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To amend title XIX of the Social Security Act to provide a permanent disproportionate share hospital allotment to Tennessee for fiscal year 2026 and succeeding fiscal years, and for other purposes.
Summary
This bill amends the Medicaid program to provide Tennessee a permanent disproportionate share hospital (DSH) allotment beginning in fiscal year 2026. The allotment for fiscal year 2026 will equal Tennessee's DSH allotment from fiscal year 2015, adjusted upward by the consumer price index for each succeeding fiscal year. After fiscal year 2026, Tennessee will be treated as a low DSH State and its allotment will increase using the same adjustment methodology as other low DSH States. DSH payments are supplemental Medicaid payments made to hospitals that serve a high proportion of low-income and uninsured patients.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
1 cosponsor
- Sen. Hagerty, Bill [R-TN] (R-TN)
Actions (2)
- Dec 2, 2025 Read twice and referred to the Committee on Finance. · senate
- Dec 2, 2025 Introduced in Senate
Similar bills (6)
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Full text
IN THE SENATE OF THE UNITED STATES
December 2, 2025
Mrs. Blackburn (for herself and Mr. Hagerty) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend title XIX of the Social Security Act to provide a permanent disproportionate share hospital allotment to Tennessee for fiscal year 2026 and succeeding fiscal years, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Delivering Support for Hospitals in Tennessee Act” or the “DSH in Tennessee Act”.
SEC. 2. PERMANENT TENNESSEE DSH ALLOTMENT FOR FISCAL YEAR 2026 AND SUCCEEDING FISCAL YEARS.
Section 1923(f)(3) of the Social Security Act (42 U.S.C. 1396r- 4(f)(3)) is amended—
(1) in subparagraph (A), by striking “subparagraphs (E) and (F)” and inserting “subparagraphs (E), (F), and (G)”; and
(2) by adding at the end the following new subparagraph:
“(G) Tennessee dsh restoration.—
“(i) In general.—Notwithstanding any other provision of this subsection, the State of Tennessee shall receive a DSH allotment under this paragraph beginning with fiscal year 2026 and for each succeeding fiscal year.
“(ii) Allotment for fiscal year 2026.— Notwithstanding the table set forth in paragraph (2) or the terms of the TennCare Demonstration Project in effect for the State, the DSH allotment for Tennessee for fiscal year 2026, shall be equal to the DSH allotment for Tennessee under paragraph (6)(A)(vi) for fiscal year 2015, increased in each succeeding fiscal year by the percentage change in the consumer price index for all urban consumers (all items; U.S. city average).
“(iii) Treatment as a low dsh state.—For any fiscal year after fiscal year 2026—
“(I) Tennessee shall be deemed to be a State described in paragraph
(5)(B); and
“(II) the DSH allotment for Tennessee shall be the DSH allotment for the previous fiscal year increased in the same manner as DSH allotments for low DSH States are increased for such fiscal year under clause (iii) of such paragraph.”. <all>
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