LINCOLN, Neb. (KOLN) — LB 958 would require the Department of Health and Human Services to improve transparency in disability assessments, while also including a provision focused on retroactive Medicaid coverage.
The proposal would mandate DHHS to cover eligible health-related expenses retroactively under Medicaid.
Retroactive Medicaid coverage allows patients who have not yet applied for Medicaid to still receive coverage for past medical costs. Currently, Nebraska provides up to 90 days of retroactive eligibility for all Medicaid recipients.
Under President Trump’s Big Beautiful Bill, Medicaid expansion patients would receive coverage for up to one month prior to applying, while traditional Medicaid recipients would be covered for two months before application.
According to a public notice, DHHS is seeking approval for a five-year waiver that would limit retroactive Medicaid eligibility across the entire Medicaid population.
For rural hospitals, losing retroactive coverage could add further financial pressure to an already strained system.
“Any time that we’re going to… to further restrict coverage, further restrict payment, we know that that’s going to affect both the level of access that patients have to health care services and then will also adversely affect the bottom line of our hospitals,” said Dr. Jed Hansen of the Nebraska Rural Health Association.
Staff at rural hospitals say they depend on reimbursement for services already provided, and without retroactive Medicaid coverage, they may not receive payment for that care.
The coverage would also support parents of critically ill newborns who are not enrolled in Medicaid at the time of birth. A Flatwater Free Press article notes that routine NICU care costs around $4,000 per day.
For the bill to move forward to a final vote, lawmakers must bring it back for debate before April 8.
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