Sen. Jacobson: Interim studies to look at ag data privacy, prescription drugs, home insurance

Although the Legislature has adjourned the 2025 session, senators are already hard at work crafting bills for January, setting up interim studies, and attending conferences and meetings throughout their districts. We need to keep in mind that any bill that was not passed into law or indefinitely postponed will carry over to 2026, the second session in the biennium. That, combined with it being a shorter session, usually means fewer new bills are offered in the second session.

I introduced three interim study resolutions this session. The first is a study to follow up on an issue that Gov. Jim Pillen asked me to study related to ag data privacy. Farmer and ranchers have an expectation that their data is secure and controlled by them to the extent possible. Today, many components of ag operations use equipment with some type of data connection that stores the output. Tractors and other equipment can be controlled remotely as well. Although we are always susceptible to cyberattacks, our data can also be collected and sold through third parties. This includes collecting our inputs and outputs, as well as genetic and other data collected from livestock EID tags and other remote devices. The right to sell or otherwise use this data should be controlled by the producer to the extent possible. My goal is to use the interim study to better understand all of the nuances and details of the ag data processes so we can improve the bill I introduced last session and move it forward in 2026.

The second interim study deals with the ongoing study of pharmacy benefit managers and the drug supply chain more generally. The Legislature has had legislation related to PBMs introduced for several years, and passed the Pharmacy Benefit Manager Licensure and Regulation Act in 2022. This year, I was pleased that I could work with my colleagues who introduced PBM legislation to bring all of the stakeholders together to implement other reasonable restrictions and protections that should improve the outlook for Nebraska pharmacies without unduly increasing drug benefit costs for insurers and, therefore, consumers. This interim study is designed to continue the discussion, including helping committee members to unwind the complicated drug supply chain. Many solutions are reserved for the federal level, but there may be more we can do in the state Legislature to increase transparency and balance stakeholder interests.

Finally, the third interim study will examine factors affecting the rising cost of home insurance and explore ways to address premium increases and the availability of property insurance coverage. Access to affordable and workforce housing is a huge challenge facing most Nebraska communities. The cost of home ownership, which includes affordable insurance and property taxes, is a major barrier to accessing new and existing housing. Adequate insurance can also impact individuals' ability to obtain financing, which can inhibit redevelopment or improvement of older or dilapidated homes. And, of course, increasing costs affect current homeowners as well.

One of the highest contributors to high property insurance is the claims resulting from roof losses. Wind and hail losses in Nebraska run higher than in any surrounding state. In addition to the high losses, many of these storms are widespread with many losses happening at once. When this happens, out-of-state companies often rush into an area and get assignments of losses from unsuspecting homeowners. Unfortunately, these assignments include giving them the right to sue the insurance company on your behalf, which they routinely do. In the end, they fix your roof, but they sue the insurer for losses that were never incurred. The insurance company ultimately settles the case and the costs rise, resulting in higher premiums. Keep in mind that these are out-of-state or big-city companies as opposed to our local roofers, who will be here before the storm and will be here after to do any follow-up work and honor any warranties.

Additionally, the cost of reinsurance has skyrocketed as major storms around the country have caused massive losses during and after the pandemic. They continue to rebuild their reserves during this time as well. It is important to remember that your local agent is doing all they can to keep you insured at the best rate possible, but they have limited options today. I look forward to hearing from insurers, insurance agents, contractors, Realtors and others about the status of Nebraska's property insurance system and consider ways we can improve this situation.

There is much to do this summer to prepare for the upcoming session. Keep sending any ideas you may have my way. I can be reached at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov. It is a pleasure serving as your state senator. I enjoy the challenge and will continue to do my best to serve the interests of District 42.