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Moratorium on Rural Health Centers

In October 2017 TennCare applied for and received a moratorium from the federal government on the registration of new RHCs with the TennCare program. The initial moratorium period is for 6 months, with applications for extensions permitted by law. In April 2019, the federal government approved a moratorium extension that runs through October 2019. The purpose of the moratorium was to allow for the creation of rules by the Division of Tenncare, in consultation with the Comptroller’s office, to address issues concerning the RHC payment methodology. The new TennCare rules will allow for greater clarity concerning 1) what constitutes permissible, reasonable cost elements that are includable in the cost report which is basic element of Medicaid RHC payments and 2) what counts as a countable visit for purposes of Medicaid payment.

TennCare is allowing interim RHC supplemental or “wraparound” payments to be made to RHCs certified by CMS during the moratorium. For more information, please see this memo: 
Interim Rates During Moratorium