TennesseeTennCare contracts cannot allow nursing homes to be dropped without cause
The law bars TennCare health plans from using contracts that allow removal of licensed, TennCare-certified nursing homes without cause and requires state review of standard facility contracts.
What it does
TennCare health plans cannot include terms allowing them to drop covered nursing homes without cause, for convenience, or without stating why. This covers contracts entered into, renewed, amended, or delivered on or after July 1, 2026.
TennCare and the Department of Commerce and Insurance must review and approve health plans’ standard facility contract forms to check compliance with the nursing home removal rules.
Argument forLimiting removal without cause could help nursing homes stay in TennCare networks, making patients’ access to covered care more stable.
Argument againstThe contract limits could reduce health plans’ flexibility to change their nursing home networks when they cannot show cause for removal.
More detail
TennCare health plans cannot include contract terms allowing them to remove covered nursing homes directly or indirectly without cause, for convenience, or without stating the grounds. The restriction covers Medicaid nursing care contracts between TennCare health plans and nursing homes that are licensed and certified by TennCare to provide that care. Removal includes involuntary exclusion from a health plan’s provider network or Medicaid and refusal to renew participation. A nursing home’s voluntary withdrawal is excluded. The law took effect July 1, 2026. Its coverage also includes policies and plans entered into, renewed, amended, or delivered on or after that date.
The Bureau of TennCare, working with the Department of Commerce and Insurance, must review and approve standard facility contract forms. The review covers all standard contract forms that TennCare health plans use when contracting with facilities. The review must check compliance with the limits on contract terms allowing nursing homes to be removed. The law took effect July 1, 2026, and applies to policies, plans, and contracts entered into, renewed, amended, or delivered on or after that date.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 26Pub. Ch. 1004Latest
- May 26Effective date(s) 07/01/2026
- May 19Signed by Governor Bill Lee.Became Law
- May 7Transmitted to Governor for his action.To Governor
- May 5Signed by Senate SpeakerMajor
- Apr 30Signed by H. SpeakerMajor
- Apr 23Enrolled; ready for sig. of H. Speaker.Minor
- Apr 16H. adopted am. (Amendment 1 - HA0948)Major
- Vote recorded FLOOR VOTE: Third Consideration 4/16/2026 Passed. Result: pass.Upper
- Vote recorded FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/16/2026 Passed. Result: pass.Lower
- Apr 16Passed H., as am., Ayes 92, Nays 0, PNV 4Passed Senate
- Apr 16Engrossed; ready for transmission to Sen.Minor
- Apr 16Received from House, Passed on First ConsiderationMinor
- Apr 16Senate substituted House Bill for companion Senate Bill.Major
- Apr 16Amendment withdrawn. (Amendment 1 - SA1003)
- Apr 16Passed Senate, Ayes 29, Nays 0Passed House
- Apr 13
- Vote recorded HOUSE CALENDAR & RULES COMMITTEE: H. Placed on Regular Calendar for 4/13/2026 4/9/2026. Result: fail.Lower
- Apr 9H. Placed on Regular Calendar for 4/13/2026
- Apr 8Placed on cal. Calendar & Rules Committee for 4/9/2026
- Apr 6Rec. for pass; ref to Calendar & Rules CommitteeMinor
- Vote recorded HOUSE GOVERNMENT OPERATIONS COMMITTEE: Rec. for pass; ref to Calendar & Rules Committee 4/6/2026 Passed. Result: pass.Lower
- Apr 1Placed on cal. Government Operations Committee for 4/6/2026
- Mar 31Rec. for pass. if am., ref. to Government Operations CommitteeMinor
- Vote recorded HOUSE HEALTH COMMITTEE: Rec. for pass. if am., ref. to Government Operations Committee 3/31/2026 Passed. Result: pass.Lower
- Mar 25Rec for pass if am by s/c ref. to Health CommitteeMinor
- Vote recorded HOUSE HEALTH SUBCOMMITTEE: Rec for pass if am by s/c ref. to Health Committee 3/25/2026 Passed. Result: pass.Lower
- Mar 25Placed on cal. Health Committee for 3/31/2026
- Mar 18Action Def. in s/c Health Subcommittee to 3/25/2026
- Mar 18Placed on s/c cal Health Subcommittee for 3/25/2026
- Mar 11Action Def. in s/c Health Subcommittee to 3/18/2026
- Mar 11Placed on s/c cal Health Subcommittee for 3/18/2026
- Mar 4Placed on s/c cal Health Subcommittee for 3/11/2026
- Feb 5P2C, ref. to Health Committee - Government Operations for ReviewMinor
- Feb 5Assigned to s/c Health SubcommitteeMinor
- Feb 4Intro., P1C.Minor
- Feb 2Filed for introductionIntroduced
Healthcare