Disability and Aging, Dept. Of - As enacted, directs the commissioner and the director of TennCare to develop guidelines for service providers for hiring qualified family members as a family caregiver; specifies that the department and the bureau of TennCare shall not prohibit qualified individuals from employment as a family caregiver at a service provider agency based on certain listed criteria. - Amends TCA Title 52 and Title 71.

SB 1178 requires Tennessee's Department of Disability and Aging and TennCare to create guidelines enabling family members to work as caregivers for people with disabilities. It prohibits Medicaid service providers from denying employment to qualified family caregivers based on factors like family relationship, residence, age, or guardianship status. The bill also prevents providers from reducing benefits for individuals with disabilities solely because their caregiver is a family member. These changes ensure family caregivers can work without discrimination under Tennessee's Medicaid programs.