LINCOLN- Following a decision on Wednesday from the Nebraska Legislature's Appropriations Committee, Nebraska hospitals might see their largest bump in Medicaid payment rates in more than 15 years. The Committee voted 6-3 to increase payment rates for health care and human services providers by 3% next year, and another 2% the following year.

The passage of this decision would add an estimated $80 million to the committee's budget proposal for the two-year period ending in 2025. This new plan would apply to healthcare providers serving Medicaid patients, which includes hospitals, nursing homes, doctors, and a large range of other medical professions.

Gov. Pillen included enough money in his proposed budget recommendations to allow for the continuance of payment rates, but not enough for increases. Despite this, medical leaders in Nebraska have argued that an increase in payment rates is critical, citing rising inflation and rampant workforce shortages. Nebraska Hospital Association President Jeremy Nordquist expressed gratitude for the increase, saying, "Certainly, it's better than zero. I know there's a lot of competing priorities."

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