The Senate Health and Welfare Committee convened on March 5, 2025, to discuss critical legislation affecting TennCare, Tennessee's Medicaid program. The primary focus was on a bill that allows TennCare to proceed with its existing payment programs, even in the event of a delay or denial from the Centers for Medicare & Medicaid Services (CMS).

During the meeting, committee members sought clarity on the implications of the legislation, particularly regarding financial responsibilities. It was confirmed that the bill does not alter the current appropriations or create additional financial risks for TennCare. Instead, it serves as a contingency plan, ensuring that existing payments can continue while awaiting CMS's final approval on a new payment program.

Chairman Watson emphasized that while the legislation allows for ongoing operations, the new payment structure would require CMS approval to be implemented. If CMS does not approve the final part of the waiver request, TennCare would face reduced funding for directed payments to hospitals, but the current operations would remain unaffected.

The committee ultimately voted in favor of the bill, which will now move to the calendar for further consideration. This legislation is seen as a necessary step to maintain stability in TennCare's funding and operations amid uncertainties with federal approval processes.