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