DC action could doom Medicaid help - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
June 24, 2025 Newswires
Share
Share
Tweet
Email

DC action could doom Medicaid help

TODD VON KAMPEN [email protected]The North Platte Telegraph

Two Nebraska members of Congress cast doubt Saturday over the future of North Platte state Sen. Mike Jacobson's two-year effort to steer more federal Medicaid dollars toward the state's hospitals and rural health care providers.

Third District U.S. Rep. Adrian Smith of Gering and U.S. Sen. Pete Ricketts of Omaha separately spoke with The Telegraph while in North Platte for the annual Nebraskaland Days parade.

Both said they're concerned about protecting rural health care but also about curbing abuses of the recyclable "provider assessment" taxes on which Jacobson-sponsored bills passed this year and last depend to capture more than $1 billion more in Medicaid help.

"I think there's a concerted eff ort that we don't shortchange providers," Smith said, but "there is the broader issue of some states aggressively expanding Medicaid enrollment."

Ricketts spoke more sharply as senators mull chopping the maximum rates for the selectively applied provider taxes by nearly half.

"States like California and New York are abusing the system, keeping the money and not passing it on (and) using it to fill holes in their general budgets" instead of covering Medicaid costs, the two-term Nebraska governor said.

"So what we need to do is reform the system and find other ways to help rural hospitals."

Jacobson, who is recovering from a fall related to treatments for metastatic skin cancer, said via text that the fate of his 2024 and 2025 measures "is now in the hands of Congress."

But "rural Nebraska needs this assessment (rate) at the highest level possible," the District 42 lawmaker said ahead of Ricketts' and Smith's visits for Nebraskaland Days.

Jacobson and state officials have waited a year for the U.S. Centers for Medicare & Medicaid Services to approve its take on the nationally popular framework for getting more aid for the combined state-federal health plan for low-income U.S. residents.

The approach typically refunds each year's provider assessments, which serve as a state's matching funds, as part of providers' higher Medicaid payments.

To use the framework, states must have expanded their Medicaid programs under former President Barack Obama's Affordable Care Act to cover most adults younger than 65 with incomes up to 138% of the federal poverty level. That was set at $21,597 a year for 2025.

Nebraska is one of 41 states that has adopted the ACA expansion — in its case, by voter approval of an initiative law to that effect in 2018.

Jacobson's Legislative Bill 1087, passed in 2024, charges Nebraska hospitals 6% of their net patient revenue to access higher Medicaid payments.

This year's LB 527, aimed at assisting rural health providers other than hospitals, similarly charges 6% of non-Medicare "direct writing premiums" under a health maintenance organization's "certificate of authority." But the Senate Finance Committee has proposed slicing the top provider tax rate from 6% to 3.5% — and thus limiting the Medicaid payments it could trigger — as part of the upper house's version of a massive tax "reconciliation" bill sought by President Donald Trump.

Federal spending is finalized by Congress' annual appropriations process, but Trump's "Great Big Beautiful Bill" address the tax-policy side, said Smith, a senior member of the House of Representatives' Ways and Means Committee.

The House, which narrowly passed its version May 22, chose to freeze additional uses of the provider-tax mechanism without cutting its top allowed rate.

It's not clear what that would mean for Jacobson's intended Medicaid reimbursement plans if the House approach becomes federal law. He has said he hopes for federal approval before Congress approves the tax bill.

Some Republicans have denounced the provider-tax mechanism as a "loophole" and "money laundering" as they press for hundreds of billions of dollars in federal budget cuts. Trump has said he wants to preserve Medicaid benefits.

The Centers for Medicare & Medicaid Services has issued a proposed rule to rein in reimbursements triggered by states' provider assessments.

A May 12 CMS press release mentions waivers approved by former President Joe Biden's administration for California, Michigan, Massachusetts and New York. It says they would let those states overcollect Medicaid funds and use the difference for unrelated programs, like California's provisions for Medicaid coverage for noncitizens.

But Smith told The Telegraph that "Nebraska has managed very well" in implementing its voter-directed Medicaid expansion.

"I want to see federal policy reward good decisions by the states rather than bad decisions by the states," he said.

Medicaid beneficiaries above the poverty line have outnumbered those below it since 2000, Smith said, but those numbers have risen greatly since the ACA allowed states to expand coverage.

"What we need to see is more of an emphasis on enrolling people in private insurance," he said.

Smith touted a bill he introduced in May with cosponsors from both parties as a way to help rural health care outside the provider-tax plans.

H.R. 3164 would reinstate a COVID-19 pandemic provision that reimburses pharmacists that accept Medicare for their testing and treatment of COVID, influenza, RSV and strep throat for Medicare's typically over-65 patients.

"Medicaid already does it, and commercial-pay insurance companies often reimburse those (costs) as well," Smith said.

The bill would set such reimbursements at 85% of what physicians taking Medicare would be reimbursed for their services.

Smith said the Ways and Means Committee should "work up" H.R. 3164 and advance it to the House floor soon.

Older

D.C. action could doom Jacobson plans for more Medicaid help

Newer

How many people in Minnesota could lose health insurance if Trump's 'big, beautiful' bill passes?

Advisor News

  • Affordability on Florida lawmakers’ minds as they return to the state Capitol
  • Gen X confident in investment decisions, despite having no plan
  • Most Americans optimistic about a financial ‘resolution rebound’ in 2026
  • Mitigating recession-based client anxiety
  • Terri Kallsen begins board chair role at CFP Board
More Advisor News

Annuity News

  • Reframing lifetime income as an essential part of retirement planning
  • Integrity adds further scale with blockbuster acquisition of AIMCOR
  • MetLife Declares First Quarter 2026 Common Stock Dividend
  • Using annuities as a legacy tool: The ROP feature
  • Jackson Financial Inc. and TPG Inc. Announce Long-Term Strategic Partnership
More Annuity News

Health/Employee Benefits News

  • Mrvan votes to reinstate expired federal health insurance subsidies
  • 'Through the roof' stress as CT health insurance glitch is corrected in open enrollment
  • Healey taps $250M to offset rising health insurance premiums
  • Why the Pittsburgh Post-Gazette’s closure exposes a growing threat to democracy
  • TRAHAN SUPPORTS BIPARTISAN LEGISLATION TO END THE GOP HEALTH CARE CRISIS
More Health/Employee Benefits News

Life Insurance News

  • Best's Review Looks at What’s Next in 2026
  • Life insurance application activity ends 2025 with record growth, MIB reports
  • Vermont judge sides with National Life on IUL illustrations lawsuit
  • AM Best Affirms Credit Ratings of Insignia Life S.A. de C.V.
  • Whole life or IUL? Help clients to choose what’s best for them
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

8.25% Cap Guaranteed for the Full Term
Guaranteed cap rate for 5 & 7 years—no annual resets. Explore Oceanview CapLock FIA.

Press Releases

  • Two industry finance experts join National Life Group amid accelerated growth
  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet