TennCare - As introduced, establishes TennCare minimum and maximum reimbursement rate levels for rural hospitals and requires that the reimbursement rate is based on the rural hospital's current federal fiscal year. - Amends TCA Title 63; Title 68 and Title 71, Chapter 5.

HB 173 sets new minimum (100%) and maximum (120%) reimbursement rates for rural hospitals providing services to TennCare patients, directly affecting rural hospitals with 49 or fewer beds located outside urbanized areas. The bill requires these rates to be calculated based on each hospital's current federal Medicare reimbursement rates. It amends Tennessee Code to define "rural hospital" and mandates that TennCare's reimbursement levels align with Medicare rates for routine inpatient care. The director may seek federal waivers to implement this without expanding Medicaid eligibility.