Officials react to the passing of Medicaid expansion

Voters across Nebraska hit the polls Tuesday to decide on several issues, one of the biggest being whether or not to expand Medicaid.

Initiative 427 would provide coverage to an additional 90,000 Nebraskans.

The measure passed with 53% of the vote, but not everyone was thrilled with the outcome — including Governor Pete Ricketts. 

“With the passing of 427 as Medicaid expansion, and what that means is we’re going to have to fit that within the budget. I’ve been very clear we are not going to raise taxes; the people of Nebraska are taxed too high already,” said Ricketts. 

Governor Ricketts has opposed expanding Medicaid in the past and says passing it now means additional strains will be placed on the state’s already tight budget.

As much as 90% of the money needed to cover the additional Nebraskans would come from the federal government, but the state would have to fund the last 10%.

Lincoln Senator Adam Morfeld says funding won’t be an issue because the measure will create jobs.

“We know that by bringing in these dollars and leveraging them it’s going to bring in more revenue and more jobs that will easily cover the costs within the next 2–3 years and it will increase a healthier work force,” said Morfeld. 

Senator Morfeld says the 33 other states that have expanded Medicaid coverage have saved money and have seen their economies grow as more jobs are created.

Even with a growing economy Governor Ricketts says in a few years the expansion is projected to cost nearly $100 million and cuts will have to be made.

“There’s going to be less money for the other priorities like K–12 education, higher education, property tax relief and even roads,” he said. 

The governor will release his budget in January and he anticipates debate over where to make cuts to pay for expanding medicaid.

Changes can be made to Initiative 427, but 30 state legislatures would have to approve it, something supporters of the measure don’t see happening.