TennCare - As enacted, makes revisions regarding determining when the annual coverage assessment is implemented and imposed; sets limits on the expenditures for directed payments to hospitals in certain circumstances. - Amends TCA Title 71, Chapter 5.

SB 577 amends Tennessee's TennCare program by shortening the time frame for implementing the annual coverage assessment from seven days to five days. It also establishes limits on hospital payments under specific circumstances, directly affecting TennCare administrators and participating hospitals. The bill changes the timing requirement in Tennessee Code Annotated Section 71-5-2005(d)(2)(D) and became effective April 3, 2025, after being signed by the Governor.