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LB 27

Change provisions of the Rural Health Systems and Professional Incentive Act

109th Legislature (2025-2026) Introduced by Beau Ballard and 1 co-sponsor

LB27 expands loan repayment and incentives for Nebraska health workers in shortage areas, notably dentists serving Medicaid patients, funded by the Medicaid Excess Profit Fund.

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Bill Summary · LB 27

Summary of Legislative Bill LB27 — Rural Health Systems and Professional Incentive Act

Overview

  • Bill Number: LB27
  • Title: Change provisions of the Rural Health Systems and Professional Incentive Act
  • Introduced: January 9, 2025
  • Committee: Health and Human Services
  • Hearing Date: January 22, 2025
  • Principal Introducer: Senator Beau Ballard
  • Status Note: Fredrickson name added

LB27 proposes to revise and expand the Rural Health Systems and Professional Incentive Act, with a focus on establishing and expanding loan repayment and incentive programs for health professionals, including a targeted loan repayment program for dentists who provide dental services to Medicaid patients.

What the bill would do (Key provisions)

  • Reaffirm and reorganize the Rural Health Systems and Professional Incentive Act.

    • Restates the purposes of the Act, creates a framework for multiple incentive programs, and harmonizes related provisions.
    • Establishes the Nebraska Rural Health Advisory Commission and defines its powers and duties.

  • Loan repayment and incentive programs (principal emphasis on dental services to Medicaid patients).

    • Creates and/or expands loan repayment options for various health professionals to practice in designated health professional shortage areas in Nebraska.
    • Specifically adds a loan repayment program for dentists who provide dental services to Medicaid patients.

  • Financial assistance programs under the Act (scope and funding).

    • Provides for student loan programs (for medical, dental, master’s/doctorate mental health programs, physician assistants, psychologists, etc.).
    • Provides for a medical resident incentive program.
    • Creates loan repayment programs for eligible health professionals in shortage areas, including responsibilities for matching funds.

  • Eligibility criteria (general framework).

    • Eligible individuals must be licensed in Nebraska and not enrolled in a residency program (with certain program-specific exceptions).
    • Eligible professionals must enter or practice in designated Nebraska health profession shortage areas (with the exception provisions described in the act).

  • Funding and administration (financial limits and sources).

    • The Medicaid Managed Care Excess Profit Fund is designated as a funding source for related incentive activities and medical service improvements, with funds allocated to the Rural Health Systems and Professional Incentive Act purposes.
    • Investment earnings from the fund, beginning October 1, 2024, are credited to the General Fund (per the act’s amendments).

Who would be affected

  • Medical professionals eligible for student loan or loan repayment incentives (e.g., physicians, dentists, psychiatrists, psychologists, nurses, nurse practitioners, physician assistants, pharmacists, physical/occupational therapists, mental health practitioners, etc.) who practice in designated health professional shortage areas in Nebraska.
  • Dentists who provide dental services to Medicaid patients would be specifically targeted by a new or expanded loan repayment program.
  • Students and residents in medical, dental, mental health, and related fields who are or will be eligible for loan assistance or residency-related incentives.
  • Rural Health Advisory Commission and state agencies administering the incentive programs.

Procedural and timeline aspects

  • Legal status and timeline: LB27 was introduced in the 2025 session and referred to the Health and Human Services committee; a hearing was scheduled for January 22, 2025.
  • Section references and amendments: The bill proposes amendments to multiple sections of Nebraska statutes (68-996; 71-5650; 71-5652; 71-5662; 71-5663) and would repeal original sections, harmonizing wording and extending programmatic scope.
  • Funding framework: Changes to the Medicaid Managed Care Excess Profit Fund and investment considerations are included, with specific direction to use funds for outlined incentive and loan repayment activities.

Notes

  • The bill text includes detailed numeric caps for loan repayment amounts by profession (e.g., annual and aggregate limits) and outlines specific eligibility and service requirements (shortage area practice, licensure, etc.). Some sections in the provided text are truncated; the summary reflects the numbers and framework presented in the available content.

Compiled from official sources — confirm details with the bill’s official record.

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