Nebraska 2025 2025-2026 Regular Session

Nebraska Legislature Bill LB527 Comm Sub / Analysis

Filed 02/05/2025

                    ONE HUNDRED NINTH LEGISLATURE - FIRST SESSION - 2025
COMMITTEE STATEMENT
LB527
 
 
Hearing Date: Tuesday February 04, 2025
Committee On: Banking, Commerce and Insurance
Introducer: Jacobson
One Liner: Adopt the Medicaid Access and Quality Act, redefine health benefit plan under the Nebraska Life
and Health Insurance Guaranty Association Act, and change provisions relating to taxes on health
maintenance organizations, prepaid limited health service organizations, and insurance
companies
 
 
Roll Call Vote - Final Committee Action:
          Advanced to General File with amendment(s)
 
 
Vote Results:
          Aye:	7 Senators Bostar, Dungan, Hallstrom, Hardin, Jacobson,
Wordekemper, von Gillern
          Nay:	1 Senator Riepe
          Absent: 
          Present Not Voting: 
 
 
Testimony:
Proponents: 	Representing: 
Senator Mike Jacobson 	Opening Presenter
John Meals	Nebraska Department of Health and Human Services
Robert  Wergin	Nebraska Medical Association, Nebraska Academy
of Family Physicians
Ryan Beethe	Nebraska Homecare Association
Libby Crockett	Grand Island Clinic
Sian Jones-Jobst	Nebraska Medical Association
Megan Kalata	Nebraska Medical Association, Nebraska Chapter of
ACOG
Jeremy  Nordquist	Nebraska Hospital Association
 
Opponents: 	Representing: 
 
Neutral: 	Representing: 
Robert  Bell 	Nebraska Insurance Federation
 
* ADA Accommodation Written Testimony
 
 
Summary of purpose and/or changes:
LB 527 would create the Medicaid Access and Quality Act (Act). The Act seeks to expand access to quality
healthcare for Nebraskans, particularly those individuals relying on Medicaid. The Act does this by creating a new 6%
Committee Statement: LB527
Banking, Commerce and Insurance Committee
Page 1 7ff3aefaa518d7cddcd55d9c403c7d67 tax on the gross amount of non-Medicare direct writing premiums from health maintenance organizations (HMO). The
revenue generated would go into a newly created fund that would be primarily used to enhance reimbursement rates
for nonhospital providers of physical health services.
Section 10 strikes the provision in current law which excludes capitation payments made in accordance with the
Medical Assistance Act from tax obligation under the Prepaid Limited Health Service Organization Act.
Section 13 is an emergency clause.
 
 
Explanation of amendments:
AM 137 strikes section 8 from the bill, and inserts clarifying language into section 4 concerning the applicability of the
tax in 2025.
 
Mike Jacobson, Chairperson
Committee Statement: LB527
Banking, Commerce and Insurance Committee
Page 2 7ff3aefaa518d7cddcd55d9c403c7d67