Nebraska hospitals take issue with Medicaid cuts in House budget bill

LINCOLN, Neb. (KLKN) — The contentious House funding bill that passed narrowly along party lines late Tuesday night could have a major impact on health care for Nebraskans.

The bill includes a nearly 10% cut to Medicaid, a joint federal and state program that helps cover costs for those with limited income.

Nebraska Hospital Association President Jeremy Nordquist said more than 300,000 Nebraskans are served by the program — mostly children — a significant portion of whom live in rural areas.

Around 40% of the state’s rural hospitals are operating in the red, and that’s before potential cuts, Nordquist said.

“If folks show up and need care at the emergency room, we don’t turn them away,” he said. “We care for them. And if they don’t have a payer source, it makes hospital care less sustainable.”

Rural hospitals make up more than 68% of all hospitals in Nebraska.

The state also has more rural residents living more than 25 minutes away from an ambulance than all but two other states, and 14 of the state’s 93 counties do not have a primary care physician.

Coverage for children, maternal care and behavioral health in rural communities is funded substantially through Medicaid.

Those services are already shuttering in some locations, forcing patients to drive significant distances for care.

Data from the Nebraska Hospital Association shows that around 16% of expectant mothers in the state must travel at least 30 minutes to find a provider — a number that’s twice the national rate.

“If we want those services across the state, we need Medicaid,” Nordquist said. “We need it to be well-funded.”

Even urban areas will likely face a reduction in services should these cuts pass, Nordquist added.

All of Nebraska’s representatives voted for the bill.

Rep. Mike Flood, the Republican representing the 1st District, praised his party’s success and said in a statement, “Tonight’s vote was the first step on the path to delivering tax cuts for working Americans. If Congress doesn’t act, working Americans will see a tax hike when the Trump tax cuts expire.”

The House bill now goes to the Senate, where it will likely face an uphill battle despite full endorsement from President Donald Trump.