NASHVILLE, Tenn. (AP) — A proposal to renew a fee on Tennessee hospitals designed to avoid millions of dollars in TennCare cuts is headed to the governor.

The measure passed the House 86-3 on Thursday. The companion bill was unanimously approved in the Senate 30-0 earlier this month.

Republican Gov. Bill Haslam's budget proposal assumed that lawmakers would adopt the more than $400 million in hospital fees, which would qualify for a 2-1 match by the federal government.

An amendment that would have raised the 4.52 percent fee to 5 percent failed Thursday. The maximum is 5.5 percent.

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