Sponsors (7)
The bill secures predictable, inflation‑protected DSH funding for Tennessee hospitals and the low‑income patients they serve, but does so by locking in a FY2015-based base and fixed formulas that may freeze outdated allocations, reduce federal flexibility, and shift costs or opportunities away from other states and taxpayers.
Tennessee hospitals and the low-income/uninsured patients they serve will receive predictable, annual DSH payments that support continued care for uninsured and underinsured people.
Tennessee's DSH allotment is indexed to CPI‑U, helping preserve the purchasing power of those federal funds over time for the state's hospitals and Medicaid programs.
Designating Tennessee as a 'low DSH State' ensures Tennessee receives the same annual increases other low‑DSH states get, providing parity in federal DSH treatment.
Locking Tennessee's allotment to a FY2015-based base amount may perpetuate funding that does not match current uninsured or Medicaid need, risking under- or mis-targeted support for low-income and Medicaid populations.
Guaranteeing and indexing Tennessee's DSH allotment could reduce the pool of DSH funds available to other states or require higher overall federal spending, shifting costs onto taxpayers or other state budgets.
Fixing the allotment formula for Tennessee may limit HHS's flexibility to adjust DSH distributions in response to changing state programs (e.g., TennCare demonstrations) or evolving provider needs.
Based on analysis of 2 sections of legislative text.
Permanently guarantees Tennessee an annual Medicaid DSH allotment starting FY2026, sets FY2026 equal to its FY2015 allotment, and ties future increases to CPI-U and the low-DSH formula.
Introduced December 3, 2025 by Diana Harshbarger · Last progress December 3, 2025
Creates a permanent Medicaid DSH (Disproportionate Share Hospital) allotment for the State of Tennessee starting in fiscal year 2026. The bill sets Tennessee's FY2026 allotment equal to Tennessee's FY2015 DSH allotment, requires annual increases tied to the CPI-U, and thereafter treats Tennessee as a "low DSH State" so future increases follow the low-DSH formula used for other states.