LINCOLN- Last Thursday, state lawmakers voted 45-0 to pass LB1087, a bill that could bring in more than $1.4 billion in federal funds to boost payment rates to hospitals in the state. The bill now awaits a signature from Gov. Jim Pillen. Nebraska hospitals proposed the legislation to address growing financial struggles, created in part by below-cost Medicaid payment rates.

Under the bill, hospitals would pay an assessment of up to 6% of net patient revenue, with money collected from these being utilized by the state to match federal funds. Updated numbers from the Legislative Fiscal Office show that the hospital assessments generated from LB1087 could net around $1.425 billion in federal matching funds.

Jeremy Nordquist, president of the Nebraska Hospital Association, said that such an increase in federal funding could increase Medicaid rates to nearly the cost of services for Nebraska's 98 hospitals, helping facilities fight financial struggles. LB1087 would also set aside 3.5% of the assessments to boost Medicaid payment rates for doctor, dental, nursing home, and other services.

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