On the penultimate day of the Nebraska Legislature’s session Friday, lawmakers scuttled through and passed 65 bills in an end-of-session blitz, sending them to the governor’s desk.
Senator John Fredrickson of Omaha – District 20 (Photo: Nebraska Unicameral Information Office)
Among them was LB929, a measure from Sen. John Fredrickson of Omaha that clarifies the ability of managed care organizations (MCOs)—private insurers that administer Medicaid benefits under contract with the state—to cover deductibles and cost-sharing fees for Medicaid enrollees if they so choose.
Originally, the bill sought to broadly limit an array of out-of-pocket costs for Medicaid recipients in Nebraska, including caps on copays and restrictions on additional cost-sharing charges. But lawmakers removed most of those provisions during first-round debate earlier this month, leaving only the provision related to MCOs.
Under the 2025 federal budget reconciliation bill, often called the One Big Beautiful Bill Act (OBBBA), states must charge copays up to $35 per service for adults enrolled in Medicaid. Fredrickson said MCOs in Nebraska began covering these charges in 2024 to ensure costs would not be a barrier to care. These costs to patients are often nominal, sometimes as low as $5. The final bill simply clarifies and cements an MCOs’ ability to continue doing so.
“Copays are associated with financial barriers, delayed treatment and worse health outcomes,” Fredrickson said. “This [proposal] simply allows the state’s managed care organizations to cover the cost of any copays, similar to how they have done previously.”
Lawmakers began the session facing a significant budget deficit, limiting support for proposals that could increase state spending. Fredrickson supported the narrowing of his original bill in a compromise.
The bill passed on Day 59 of the 60-day session on a 31-18 vote. Lawmakers will adjourn for the year this Friday, April 17. Any veto from the governor would require 30 votes to override.