By AP
Nashville, TN – Federal officials have approved a proposal allowing Tennessee hospitals to pay a fee to avoid TennCare cuts. TennCare officials announced the approval by the Centers for Medicare and Medicaid Services Thursday.
Earlier this year, the board of the Tennessee Hospital Association unanimously endorsed an "enhanced coverage fee" to be placed on hospitals. Under the arrangement, the 3.5% fee will be matched by federal dollars allowing the state to maintain enrollee benefits at current levels and avoid across the board provider rate reductions.
Tennessee now joins more than 25 other states that have similar plans in place.