TennCare director reports record shared‑savings investments under TennCare 3 waiver; outlines rural, behavioral health and diaper pilot funding

NASHVILLE — TennCare Director Steven Smith told the House Health Full Committee that TennCare’s managed‑care model and Tennessee’s Section 1115 waiver, known as TennCare 3, have produced shared savings the agency is reinvesting in services such as adult dental care, rural health supports and behavioral‑health capacity.

“When it comes to our mission, TennCare is more successful today than at any point in our 30 year history,” Smith told the committee and credited “many people working over decades” for the program’s fiscal and quality gains.

Why it matters: TennCare covers roughly one in five Tennesseans and accounts for a large share of state spending. Smith described how shared savings under the waiver have funded one‑time and multi‑year investments intended to expand access and address workforce shortages, particularly in rural and behavioral‑health services.

Program size and financing Smith described TennCare as a traditional Medicaid program…