Blackburn Introduces Bills to Support and Expand Tennessee’s Medicaid Innovation

Blackburn Introduces Bills to Support and Expand Tennessee’s Medicaid Innovation
December 2, 2025
WASHINGTON, D.C.
– Today, U.S. Senator
Marsha Blackburn
(R-Tenn.) introduced a package of three bills to support and expand Tennessee’s Medicaid innovation. The legislation includes the
Access to New Community Health Opportunities and Recovery (ANCHOR) Act
, the
Delivering Support for Hospitals (DSH) in Tennessee Act
, and the
Medicaid Primary Care Improvement Act
.
“Tennessee is leading the way when it comes to Medicaid innovation, and these bills would expand that effort to improve the lives of Tennesseans,”
said Senator Blackburn.
“This package would strengthen support for our hospitals, give states the flexibility to use more effective primary care models, and allow states to provide Medicaid coverage to those battling serious mental illness or substance use disorder.”
THE ANCHOR ACT
The
ANCHOR Act
would:
Create a state plan option to provide Medicaid coverage to those suffering from severe mental illness or substance use disorder for a period of up to one year; and
Require states to create a care plan for individuals within 60 days of enrollment.
The
ANCHOR Act
is endorsed by
Mental Health America (MHA)
, the
National Association of State Mental Health Program Directors (NASMHPD)
,
National Alliance on Mental Illness (NAMI)
,
Tennessee Hospital Association, Texas Academy of Family Physicians
,
and the
Texas Hospital Association
:
“Mental Health America commends Congressman Pfluger and Senator Blackburn for their leadership in introducing the ANCHOR Act,”
said Tim Clement, Vice President of Federal Government Affairs at Mental Health America.
“People with serious mental illnesses and substance use disorders who lack insurance coverage are at great risk of suicide and overdose, and this bill will help them receive treatment and begin their journey to recovery.”
“The ANCHOR Act provides states with a means to expand Medicaid coverage for uninsured individuals facing significant behavioral health issues, guaranteeing timely and coordinated care to enhance health outcomes,”
said Brian Hepburn, M.D., Executive Director for National Association of State Mental Health Program Directors (NASMHPD).
THE DSH IN TENNESSEE ACT
Tennessee is the only state without permanent Disproportionate Share Hospital (DSH) funding, which provides payments to hospitals that treat large numbers of low-income patients. The
DSH in Tennessee Act
would:
Fix the long-standing issue where Tennessee had to rely on carveouts instead of a stable federal DSH allotment by giving Tennessee a permanent DSH allotment starting in fiscal year 2026; and
Increase Tennessee’s DSH enrollment every year to keep pace with inflation.
Click
here
for bill text.
THE MEDICAID PRIMARY CARE IMPROVEMENT ACT
The
Medicaid Primary Care Improvement Act
would:
Allow states to use Medicaid dollars to pay for Direct Primary Care Arrangements (DPC), which are fixed, monthly membership-style payments that cover a defined set of primary care services by giving the option for states to contract with DPC practices.
This would expand healthcare access for Medicaid beneficiaries and improve health outcomes, reduce emergency room visits, and save unnecessary medical costs.
Click
here
for bill text.
https://www.blackburn.senate.gov/index.php/2025/12/health care/blackburn-introduces-bills-to-support-and-expand-tennessee-s-medicaid-innovation