How to Launch an NEMT Business in Tennessee: A "Bambi Knows Best" State-By-State Series Part 3: Navigate Tennessee’s Regulations and Secure Insurance Wow, we’ve seen it. You’ve built out your biz framework for your NEMT venture — well done! Now comes the crucial and, if we’re honest, not always the most fun step of ensuring your operations comply with Tennessee’s rules and regulations. From mastering state-specific requirements to securing the right insurance, this friendly guide is here to help you stay on track as you drive through the Volunteer State’s diverse landscapes.
Here’s a step-by-step breakdown to keep your business compliant, safe and ready to roll:
1 | Understand Tennessee’s NEMT Regulations Tennessee’s Medicaid-funded NEMT services are overseen by TennCare , the state’s Medicaid program. TennCare contracts with managed care organizations (MCOs) to provide NEMT services to eligible clients, ensuring they have access to healthcare appointments.
To start, register as an NEMT provider with the MCOs serving your area. This process typically requires:
Submitting a detailed application Meeting vehicle accessibility standards Ensuring all drivers complete required safety and training certifications Complying with TennCare’s guidelines ensures you’re ready to provide top-notch service to Medicaid beneficiaries across Tennessee.2 | Adhere to Federal NEMT Guidelines For businesses serving Medicaid patients, compliance with Centers for Medicare & Medicaid Services (CMS) standards is essential. These federal regulations focus on passenger safety, vehicle reliability and accessibility.Whether you’re navigating the urban streets of Memphis or providing transport in rural Appalachian communities, aligning with these guidelines keeps your operations professional and dependable.3 | Secure the Right Insurance Insurance is a must-have for any NEMT business operating in Tennessee. The following policies are essential:
Commercial Vehicle Insurance to cover accidents or damageGeneral Liability Insurance for passenger safetySpecialized NEMT Coverage to address risks unique to this particular caregiving industryWork with an insurer familiar with NEMT operations to get coverage tailored to your needs. Tennessee’s varying terrain, from mountainous roads to city highways, underscores the importance of robust coverage for all scenarios.4 | Obtain Licenses and Permits Tennessee’s cities and counties may have unique licensing requirements, so it’s super important to check local regulations. Beyond registering with TennCare for Medicaid services, additional permits may be required, including:
Local Business Licenses from city or county officesSpecial Vehicle Permits for accessibility or operational complianceFrom what we know, confirming local requirements will help you avoid delays and ensure smooth operations from day one.5 | Meet Employer Responsibilities As your business grows, you’ll need to comply with Tennessee’s labor laws and employer requirements, including:
Workers’ Compensation Insurance to protect employeesUnemployment Insurance Registration with the Tennessee Department of Labor and Workforce DevelopmentEnsuring fair labor practices and safe working environments Treating your employees with respect and care helps foster a motivated team, which from experience translates into better service for your clients.By staying up-to-date on Tennessee’s NEMT regulations and securing essential insurance, you’ll set your business up for success. You’re not just offering transportation — you’re providing a vital connection to healthcare for your neighbors across the state. Now if that’s not a legacy worth living for and building up, we’re not sure what is!Stay tuned for Part 4 , where we’ll explore funding opportunities to help grow your business. Or, head back to the table of contents for more insights into starting an NEMT business in Tennessee.
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