Tenn. Code Ann. § 8-27-103: Authority to enter into contracts necessary to administer plans - Participation with health maintenance organizations

(a) The committees, acting individually or collectively, have the authority to enter into contracts with insurance companies, claims administrators, and other organizations for some or all of the insurance benefits or services, including actuarial and consulting advice, necessary to administer the plans authorized in parts 2, 3, and 7 of this chapter. The procurement of the contracts shall be governed by title 4, chapter 56, and the rules promulgated pursuant to that chapter.

(b) The contracts described in subsection (a) may include self-insured contracts with health maintenance organizations established pursuant to the Health Maintenance Organization Act of 1986, compiled in title 56, chapter 32, notwithstanding any language in title 56 to the contrary. The committees shall permit participation with those health maintenance organizations only in locations for which the organization has been issued a certificate of authority by the department of commerce and insurance.