This week, I wanted to share an update on three healthcare bills that the Legislature approved earlier this year.
We’ve all noticed that the cost for everything has risen during the past few years. Healthcare is no exception. Many rural hospitals and clinics are struggling to keep costs in line with revenue. In response to rising costs and declining reimbursement to hospitals for care to Medicaid patients, the Legislature passed LB1087, otherwise known as the Hospital Quality Assurance and Access Assessment Act.
LB1087, despite its tongue-twisting name, is a very straightforward bill. Under the new law, hospitals are charged a fee equivalent to a percentage of their revenue. This fee will be used by the Nebraska Department of Health and Human Services (DHHS) to secure over $1.4 billion in federal funds that will be distributed to hospitals across Nebraska to offset costs associated with providing healthcare to Medicaid patients. The bill provides a huge financial boost to Nebraska hospitals, with over $1 billion expected each year. This is a tremendous benefit, especially to many struggling rural hospitals. LB1087 also has no net impact on our state budget. LB1087 is a win-win for Nebraska.
Nebraska’s farmers, ranchers, and self-employed small business owners have historically struggled with acquiring affordable health insurance. I know of several farm families who have been forced to stop farming and rent out, or even worse, sell their land in order to afford their health care expenses. The Affordable Care Act (ACA) passed by Congress in 2010 was intended to provide lower-cost health insurance to Americans who struggled to afford health insurance.
Despite this, many farmers, ranchers, and small business owners cannot afford the premiums offered under the federal ACA. LB1313 provides agricultural nonprofit organizations the ability to offer health benefit plans to their members and small businesses. Health care plans are different from insurance in that they utilize a network of providers to provide care at a reduced cost. Organizations like Farm Bureau and other agricultural nonprofits can take advantage of this new law and offer health care plans to their members. It is estimated that the new nonprofit-backed health plans could save participants 40-60% in costs relative to unsubsidized federal insurance under the ACA.
The Legislature unanimously approved LB1035, which I introduced, to create the Nebraska Prescription Drug Donation Program. LB1035 allows Nebraska to participate in a multi-state prescription drug donation program where donated prescriptions are collected, inspected, and offered to individuals who are uninsured or underinsured. LB1035 requires the donated prescriptions to be in tamper-evident, sealed packaging. The prescriptions donated cannot be expired. Opioids and other similar controlled substances are prohibited from the program. LB1035 will give a second life to much of the many tons of medication that is currently being collected and incinerated each year in our state.
LB1035’s implementation is delayed because a federal rule was issued in June that impacts all prescription medications. The federal rule was intended to impose a chain of custody on medication that has potential for abuse or is addictive. However, as I understand it, it applies to all prescription medication. The rule also did not take into consideration prescription drug donation programs in states like Iowa, Nebraska, or Vermont.
As a result, I intend to introduce a bill that will exempt our prescription drug donation program from the federal rule and allow it to get up and running. While I am frustrated by this development, I am thankful that it came before our prescription drug donation program was fully implemented and we have the opportunity to address it in January.
As always, if I can be of assistance to you in any way, please do not hesitate to contact my office. My staff members – Matt and Katie – are available to assist you with your needs and they pass along messages, so if you’d like a call back, please let them know!
Email: jhughes@leg.ne.gov
Phone: 402-471-2756
Facebook: Senator Jana HughesSenator Jana HughesDistrict 24402-471-2756
