Legislature tackles health, housing policies

The Nebraska Legislature on Tuesday advanced changes to when health coverage begins for Nebraskans on Medicaid and debated requiring developers to build more housing for disabled people.

Currently, Nebraskans who enroll in Medicaid can get coverage for up to three months before they apply. Last year’s One Big Beautiful Bill Act allows states to eliminate this so-called “lookback” period.

That’s what Gov. Jim Pillen recommended in his budget. But the Appropriations Committee opted to recommend the maximum retroactive coverage allowed by federal law: two months for traditional Medicaid recipients, and one month for those joining under the Medicaid expansion program. That would cost the state about $4.6 million next year.

That proposal is moving ahead in the budget. Sen. Machaela Cavanaugh, sponsor of a bill (LB958) to put the lookback period into state law, said it’s important.

“It requires Nebraska Medicaid to maintain the maximum amount of retroactive coverage allowed under federal law. This approach balances the need to protect families and providers while aligning with federal standards,” Cavanaugh said.

The bill also requires the Department of Health and Human Services to ensure that employees who assess people with developmental disabilities to determine services they need must be trained in clinical interviewing techniques. Some families have complained the state’s assessments are reducing services for developmentally disabled relatives.

The bill got first round approval on a vote of 45-0.

Senators also tackled the question of insurance coverage for children’s neuropsychiatric disorders know as PANS or PANDAS.

Sen. George Dungan, sponsor of the legislation (LB762), referred to family members of people with the disease who were watching the Legislature from the balcony.

“The reality of the situation is, colleagues, we have people here today, literally here today, but in the state of Nebraska, who need this treatment,” Dungan said.

Sen. Mike Jacobson said he sympathized with the families, but opposed the bill for its possible effect on the cost of insurance.

“A health insurance policy today in Nebraska costs about $36,000 a year. Now your employer is probably subsidizing part of that, or ACA or someone, but the actual cost is about $36,000 a year. And when you add mandates, that number goes up,” Jacobson said.

The Legislature voted 45-2 for first-round approval of the bill.

And senators took up a question of housing for disabled people.

Sen. Victor Rountree is sponsor of legislation (LB839) that would require developers who use financing from the state’s Affordable Housing Trust Fund to build a certain percentage of units accessible to people with mobility impairments and 4% for people with vision or hearing impairments. Rountree said there’s an urgent need, especially in today’s economy.

“It is vital we acknowledge the realities in front of us. The economic situation grows more strain every day, and housing gets more and more expensive. For those on a fixed income and with a disability, finding a way to get a roof over your head can feel nearly impossible,” Rountree said.

Sen. Kathleen Kauth spoke in opposition.

“A lot of this is over-regulation, and a lot of this is government getting involved in market conditions, and I don't think that's helpful. You don't make anything better by telling people that the government is going to force you to build something a certain way,” Kauth said.

The Legislature adjourned for the day before reaching a vote on the bill, but Rountree said he hopes it will be scheduled for further debate in the next few days.

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