Tennessee law mandates financial predictability in payer-provider contracts — 5 takeaways

On April 5, Tennessee Gov. Bill Haslam signed a new law that requires predictability in health plan and healthcare provider contracts, according to Lebanon Democrat.

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Here are five takeaways:

 

1. Both Tennessee General Assembly state chambers passed the Provider Stability Act unanimously.

 

2. Sen. Bo Watson, R-Hixson, and Rep. Cameron Sexton, R-Crossville, sponsored the bill.

 

3. The act requires payers to offer providers a 60-day notice of altered reimbursement rates, if those rate changes are due to a payer-implemented policy change.

 

4. The Provider Stability Act caps fee schedule changes to one time per 12-month period, with a 90-day notice of changes.

 

5. The Tennessee Medical Association backs this legislation, which exists in no other state.

 

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