NASHVILLE – Federal officials have approved Tennessee’s proposal to draw federal matching dollars in association with a new hospital assessment fee, according to a news release from the TennCare bureau.
That will help avoid benefit changes and reductions in provider reimbursement rates that would have otherwise been required this year, according to the release.
The General Assembly approved the fee in May.
“The approval of the hospital assessment fee provides the bureau with the financial resources to continue providing needed benefits to our enrollees,” said TennCare Director Darin Gordon said in the release.
Under the arrangement, private hospitals will pay a 3.52 percent fee on their annual coverage assessment base that will be matched by federal dollars.
These funds will allow the state to maintain enrollee benefits at current levels and avoid across-the-board provider rate reductions, officials said.