State Rep. Charlie Baum, R-Murfreesboro, is proposing an expansion of TennCare that would provide short-term benefits for Tennesseans in need and support rural hospital systems.
NASHVILLE, Tenn. – State Rep. Charlie Baum, R-Murfreesboro, is proposing an expansion of TennCare that would provide short-term benefits for Tennesseans in need and support rural hospital systems.
House Bill 18 would enable TennCare to establish a temporary medical assistance benefit program, expanding the income threshold to include certain individuals who are not currently eligible for existing state medical assistance programs.
“This expansion fills a critical gap in coverage for citizens facing unemployment or unforeseen crises, while providing vital financial support to hospital systems, especially in rural areas who typically see more uninsured patients,” Baum said. “Tennessee would lead the charge as one of the first states in the nation to offer short-term benefits like this through its state Medicaid program.”
Since 2010, Tennessee has seen 16 hospital closures, 13 of which were in rural areas, primarily due to financial instability, exacerbating the growing gap in access to health care, according to the Tennessee Hospital Association.
The proposed program would provide medical benefits to eligible children and adults for up to 12 months within a 24-month period, with a total maximum of 60 months. For children, the time limit resets on their 21st birthday.
Eligible individuals include those whose income, or their family’s income, does not exceed 138% of the federal poverty level (FPL) who are not currently enrolled in other medical assistance programs. For example, a single person earning up to $20,140 annually or a family of four earning up to $41,520 may qualify for this program.
The program would be funded with 90% federal funds and 10% state funds. TennCare officials would need to submit the waiver application to the federal government by the end of 2025, and if approved, the program would become effective on July 1, 2026.
House Bill 18 unanimously passed out of the TennCare Subcommittee on Feb. 11 and will be heard in the Insurance Committee in the coming weeks.
Charlie Baum represents District 37 which includes part of Rutherford County.