S. 3299 — DSH in Tennessee Act

This section establishes a permanent Medicaid disproportionate share hospital (DSH) allotment for Tennessee for FY2026 and succeeding fiscal years, notwithstanding other provisions of law, and amends section 1923(f)(3)(A) of the Social Security Act to reference the new subparagraph (G). (DSH allotments provide federal funding to states for supplemental payments to hospitals serving disproportionate shares of low-income or Medicaid patients; Tennessee previously received no DSH allotment for FY2026 and later due to its TennCare demonstration waiver.) For FY2026, Tennessee's DSH allotment equals its FY2015 allotment under section 1923(f)(6)(A)(vi); succeeding fiscal years are increased by the percentage change in the Consumer Price Index for All Urban Consumers (U.S. city average). For FY2027 and later, Tennessee is deemed a low-DSH state, with its allotment increased as provided for such states under section 1923(f)(5)(B)(iii).