Automatic insurance enrollment proposed for some children

The Health and Human Services Committee considered a bill March 13 intended to provide insurance “express lane eligibility” for children enrolled in the Supplemental Nutrition Assistance Program.

LB283, introduced by Omaha Sen. Ashlei Spivey, would automatically enroll eligible children who receive SNAP benefits in Medicaid or the Children’s Health Insurance Program.

The bill would require the state Department of Health and Human Services to submit a state plan amendment no later than Oct. 1, 2025, to the federal Centers for Medicare and Medicaid Services to implement the process.

Spivey said express lane eligibility likely would result in significant cost savings to the state by streamlining the enrollment and renewal process and removing bureaucratic barriers. For example, she said, the process saved one state more than $7 million in three years.

“[LB283] reduces administrative burdens on families, health care providers and state agencies … [and] improves health outcomes for Nebraska’s children,” Spivey said.

Trevor Toteve, a policy analyst for OpenSky Policy Institute, testified in support of the measure. He said Medicaid and CHIP enrollees often experience lapses in coverage due to guidelines that require eligibility renewal every 12 months.

Over 4,000 children experienced a temporary loss of coverage last year, he said, 78% of whom were disenrolled for procedural reasons.

“The majority of children enrolled in SNAP are also enrolled in Medicaid or CHIP,” Toteve said. “SNAP is therefore well-suited to verify eligibility and prevent lapses in coverage.”

Representing Voices for Children in Nebraska, Anahi Salazar also spoke in favor of the bill, saying children who lose access to health care coverage often experience worse health outcomes, delayed treatments and missed early interventions.

When that access is simple and consistent, however, children are more likely to receive necessary checkups, vaccinations and developmental screenings, she said, preventing more serious health issues down the road.

“Access to health insurance is directly linked to a child’s well-being, educational success and long-term opportunities,” Salazar said. “LB283 is a smart, practical solution to help more Nebraska children get the health coverage they need.”

No one testified in opposition to the proposal and the committee took no immediate action on it.