HB0385 amends Tennessee tax relief laws to allow healthcare providers to claim unreimbursed costs as charitable contributions.

HB0385 modifies Tennessee Code to permit eligible healthcare providers to treat their unreimbursed costs as charitable contributions for tax purposes. These costs are defined as the difference between 125% of the average federal Medicaid reimbursement rate and the TennCare reimbursement rate. TennCare will issue a statement of these contributions by January 31 of the following year. To receive this certification, providers must pay a $25 fee by January 15. Group practices must pay $25 per provider. The bill takes effect July 1, 2025, for tax purposes and immediately for rule promulgation.

HB0385 amends Tennessee tax relief laws to allow healthcare providers to claim unreimbursed costs as charitable contributions.

HB0385 modifies Tennessee Code to permit eligible healthcare providers to treat their unreimbursed costs as charitable contributions for tax purposes. These costs are defined as the difference between 125% of the average federal Medicaid reimbursement rate and the TennCare reimbursement rate. TennCare will issue a statement of these contributions by January 31 of the following year. To receive this certification, providers must pay a $25 fee by January 15. Group practices must pay $25 per provider. The bill takes effect July 1, 2025, for tax purposes and immediately for rule promulgation.