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LB 188

State intent to appropriate for medicaid nursing facility rates

109th Legislature (2025-2026) Introduced by Barry DeKay and 2 co-sponsors

LB 188 locks in funding for Medicaid nursing facility rates, requires 3% annual bumps in FY 2025-26 and 2026-27, and mandates inflation method reporting plus emergency clause.

Title printed. Carryover bill
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Bill Summary · LB 188

Summary of Nebraska LB 188 (2025)

Overview

  • Bill: LB 188
  • Title: State intent to appropriate for Medicaid nursing facility rates
  • Introduced: January 13, 2025
  • Primary Sponsor: Senator Dover; Cosponsors: Senator DeKay, Senator Raybould
  • Committee: Appropriations
  • Status: Notice of hearing scheduled for March 11, 2025
  • Legislative action: Referred to Appropriations; hearing notice published; emergency clause included

Purpose and Intent

LB 188 expresses the Legislature’s intent to appropriate funds to the Department of Health and Human Services (DHHS) for Medicaid nursing facility rates (Program No. 348). The appropriations are to be used specifically in calculating Medicaid nursing facility rates, including the annual inflation factor, and to support rate enhancement and related Medicaid nursing facility services.

Key Provisions

  • Funding intent for Program No. 348:
    • FY 2025-26: Total appropriated amount stated as $462,480,546 (split between General Funds and Federal Funds to be determined; placeholders “XXX” appear in the text)
    • FY 2026-27: Total appropriated amount stated as $476,717,026 (split between General Funds and Federal Funds to be determined; placeholders “XXX” appear in the text)
    • These totals are to be used in the Medicaid nursing facility rate calculation, including the inflation factor calculation.
  • Rate increases:
    • A 3% increase in Medicaid nursing facility rates for FY 2025-26
    • A 3% increase in Medicaid nursing facility rates for FY 2026-27
  • Program scope:
    • The appropriations cover the total program costs for Program No. 348, including rate enhancement and any other purpose related to Medicaid nursing facility services.
  • Reports and accountability:
    • By August 1, 2025: The Department must file electronically with the Legislative Fiscal Analyst (LFA) and the Clerk of the Legislature a report detailing how the inflation factor was calculated for FY 2025-26 rates.
    • Between December 15 and December 31, 2025: The Department must file electronically with the LFA and the Clerk a report identifying any unobligated remaining appropriation, including encumbrances and retroactive payments.
  • Emergency clause:
    • The bill contains an emergency clause, making it effective upon passage and approval as provided by law.

Who/What is Affected

  • Affected entity: Department of Health and Human Services (DHHS), Agency No. 25
  • Program: Medicaid nursing facility rates (Program No. 348)
  • Beneficiaries: Medicaid nursing facility providers and facilities (rates impact providers’ reimbursements)

Fiscal and Procedural Details

  • The bill specifies total program appropriations and requires use in rate calculations, including inflation adjustments.
  • It introduces annual rate increases (3% in each of FY 2025-26 and FY 2026-27).
  • It mandates future reporting on inflation methodology and unobligated funds.
  • It includes an emergency clause to accelerate effect.

Bottom Line

LB 188 aims to lock in funding for Medicaid nursing facility rates, mandate a 3% rate increase in two consecutive fiscal years, and require transparent reporting on inflation calculations and remaining unobligated funds. It seeks to ensure adequate funding and predictable rate setting for nursing facility providers, with emergency applicability upon enactment.

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

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