Hospital assessment program approved

A bill intended to increase Medicaid payments to Nebraska hospitals by accessing federal matching funds through an assessment program was approved by lawmakers March 21.

LB1087, introduced by North Platte Sen. Mike Jacobson, requires the state Department of Health and Human Services to submit a state plan amendment to the Centers for Medicare and Medicaid Services for approval to impose an assessment on Nebraska hospitals.

Under the plan, each Nebraska hospital will pay an assessment fee based on their quarterly net patient revenue. The total statewide assessment amount cannot exceed 6% of the total net patient revenue of all assessed hospitals.

The program will be administered by DHHS, which will receive an administration fee of 3% of the assessment amount, not to exceed $15 million per year. Of the total assessed amount, 3.5% may be used for health priorities including funding non-hospital Medicaid providers. That amount is capped at $17.5 million.

The bill was amended on select file to remove a sunset provision adopted during an earlier round of debate.

LB1087 passed 45-0 and took effect immediately.