LINCOLN- Struggling Nebraska nursing homes could get a $23 million federal lifeline under Sen. Myron Dorn's LB130, which was advanced by lawmakers last Friday. The measure would expand an existing funding mechanism used to boost federal Medicaid dollars to the state. The additional funding would then be used to increase rates paid to nursing homes for the care of Medicaid residents.

Sen. Dorn argued that the measure would have a "very, very positive" impact on nursing homes in the state, and that such an increase would slow down nursing home closures. Over the last three years, twelve nursing homes, struggling with rising costs, staffing shortages, and unfunded federal mandates, have closed in the state.

Industry leaders say state Medicaid payment rates have not kept up with these rising costs, pointing out that many of these closures have occurred in Nebraska's rural communities. An amendment to LB130 would boost nursing home provider taxes to $9 per day per resident, which would yield a net increase of roughly $23 million for Medicaid nursing home rates, said Dorn.

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