Tennessee Code Annotated
Tenn. Code Ann. § 56-7-120 (2026)
Assignment of benefits to health care provider
✓ current as of May 2026
- (a) Notwithstanding any law to the contrary, if a policy of insurance issued in this state provides for coverage of health care rendered by a healthcare provider covered under title 63, the insured or other persons entitled to benefits under the policy are entitled to assign their benefits to the healthcare provider and such rights must be stated clearly in the policy. Notice of the assignment must be in writing to the insurer in order to be effective unless otherwise stated in the policy.
- (b) As used in this section:
- (1) [Deleted by 2023 amendment.]
- (2) [Deleted by 2023 amendment.]
- (3) "Healthcare facility" means a hospital as defined in § 68-11-201, or an ambulatory surgical treatment center as defined in § 68-11-201;
- (4) "Healthcare provider" means any doctor of medicine, osteopathy, dentistry, chiropractic, podiatry, or optometry; a pharmacist or pharmacy; a hospital; a home health agency; an entity providing infusion therapy services; or an entity providing medical equipment services; and
- (5) "Insured" means any person who has health insurance coverage as defined in § 56-7-109 through a health insurance entity as defined in § 56-7-109.
- (6) [Deleted by 2023 amendment.]
- (c) [Deleted by 2023 amendment.]
- (d) [Deleted by 2023 amendment.]
- (e) [Deleted by 2023 amendment.]
- (f) This section does not prohibit a policy of insurance from providing reimbursement to an insured for expenses the insured incurred when the insured remitted payment directly to a healthcare provider or healthcare facility for provided covered healthcare services.
Amended by 2023 Tenn. Acts, ch. 42, s 1, eff. 3/14/2023.
Amended by 2021 Tenn. Acts, ch. 260, s 1, eff. 7/1/2021.
Amended by 2019 Tenn. Acts, ch. 239, s 1, eff. 4/30/2019.
Amended by 2019 Tenn. Acts, ch. 62, s 1, eff. 3/28/2019.
Amended by 2018 Tenn. Acts, ch. 840, s 1, eff. 7/1/2018.
Acts 1992, ch. 918, § 1; 1993, ch. 111, § 1; 1997 , ch. 248, § 1; 2009 , ch. 365, § 1; 2010 , ch. 1027, §§ 1, 2; 2011 , ch. 6, § 1.
Notes of Decisions
Cited in 6
cases, 2013–2020 · leading case: Dialysis Newco, Inc. v. Commty Hlth Sys Tr, 938 F.3d 246 (5th Cir. 2019).
Dialysis Newco, Inc. v. Commty Hlth Sys Tr, 938 F.3d 246 (5th Cir. 2019). “Tenn. Code Ann. § 56-7-120 (a) (2012) 7 states: Notwithstanding any law, rule, or regulation to the contrary, whenever any policy of insurance issued in this state provides for coverage of health care rendered by a provider covered under title 63, the insured or other persons…”
Productive MD, LLC v. Aetna Health, Inc., 969 F. Supp. 2d 901 (M.D. Tenn. 2013). “Because Productive MD and Aetna have not adequately addressed whether ERISA preempts Tenn.Code Ann. § 56-7-120, the court expresses no opinion at this stage as to whether the Tennessee statute applies to the ERISA-governed plans at issue here.”
W. A. Griffin, MD v. Focus Brands Inc., 635 F. App'x 796 (11th Cir. 2015). “§ 420-B:8-n (requiring insurance contracts to "contain a provision permitting the enrollee to assign any benefits provided for medical or dental care on an expense-incurred basis to the provider of care”); Tenn.Code Ann. § 56-7-120 (“[W]henever any policy of insurance issued in…”
W.A. Griffin, MD v. Gen. Mills, Inc., 634 F. App'x 281 (11th Cir. 2015). “§ 420-B:8-n (requiring insurance contracts to "contain a provision permitting the enrollee to assign any benefits provided for medical or dental care on an expense-incurred basis to the provider of care”); Tenn.Code Ann. § 56-7-120 ("[WJhenever any policy of insurance issued in…”
Action Chiropractic Clinic, LLC v. Prentice Delon Hyler (Tenn. Ct. App. 2014). “02; Action opposed the motion, stating that the court failed to address two issues: (1) whether Hyler had a right under Tenn. Code Ann. § 56-7-120 to assign insurance benefits to Action and, if so, whether Erie violated the statute by not honoring the assignment, and (2) whether…”
Select Specialty Hosp.-Memphis, Inc. v. The Trs. of the Langston Companies, Inc. Benefit Prog. (W.D. Tenn. 2020). “The Tennessee Prompt Pay Act, Tenn. Code Ann. § 56-7-120 The Tennessee Prompt Pay Act requires health insurers to “comply with certain timeliness and notification requirements for payment submitted by health care providers.”
— Tenn. Code Ann. § 56-7-120(a) — 1 case
Productive MD, LLC v. Aetna Health, Inc., 969 F. Supp. 2d 901 (M.D. Tenn. 2013). “Because Productive MD and Aetna have not adequately addressed whether ERISA preempts Tenn.Code Ann. § 56-7-120, the court expresses no opinion at this stage as to whether the Tennessee statute applies to the ERISA-governed plans at issue here.”
— Tenn. Code Ann. § 56-7-120(a)(1) — 2 cases
Productive MD, LLC v. Aetna Health, Inc., 969 F. Supp. 2d 901 (M.D. Tenn. 2013). “Because Productive MD and Aetna have not adequately addressed whether ERISA preempts Tenn.Code Ann. § 56-7-120, the court expresses no opinion at this stage as to whether the Tennessee statute applies to the ERISA-governed plans at issue here.”
Action Chiropractic Clinic, LLC v. Prentice Delon Hyler (Tenn. Ct. App. 2014). “02; Action opposed the motion, stating that the court failed to address two issues: (1) whether Hyler had a right under Tenn. Code Ann. § 56-7-120 to assign insurance benefits to Action and, if so, whether Erie violated the statute by not honoring the assignment, and (2) whether…”
— Tenn. Code Ann. § 56-7-120(a)(2) — 1 case
Action Chiropractic Clinic, LLC v. Prentice Delon Hyler (Tenn. Ct. App. 2014). “02; Action opposed the motion, stating that the court failed to address two issues: (1) whether Hyler had a right under Tenn. Code Ann. § 56-7-120 to assign insurance benefits to Action and, if so, whether Erie violated the statute by not honoring the assignment, and (2) whether…”
— Tenn. Code Ann. § 56-7-120(a)(l) — 1 case
Productive MD, LLC v. Aetna Health, Inc., 969 F. Supp. 2d 901 (M.D. Tenn. 2013). “Because Productive MD and Aetna have not adequately addressed whether ERISA preempts Tenn.Code Ann. § 56-7-120, the court expresses no opinion at this stage as to whether the Tennessee statute applies to the ERISA-governed plans at issue here.”
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