Omnibus health services bill amended, advanced

Lawmakers gave first-round approval March 23 to a bill that would make a number of changes to health services provision in Nebraska after amending it to remove a proposal related to youth treatment facilities.

As introduced by the Health and Human Services Committee, LB867 would update administration of several state Department of Health and Human Services’ programs. Among other provisions, the measure would:
• clarify eligibility for the Bridge to Independence Program;
• authorize DHHS to use available federal funds to award grants beyond the state’s allocated appropriations to individuals, community organizations and schools to start or improve child care programs or support staff training; and
• exclude expenses needed to earn income when determining financial need for assistance and remove a requirement for payment to be made by state warrant under the Aged, Blind or Disabled program.

Sen. Brian Hardin of Gering, chairperson of the committee, said the proposal would make important “housekeeping” updates to a number of state programs and services.

“[LB867] ensures that our state’s public health systems are working effectively and efficiently,” he said.

The committee offered an amendment that would incorporate the provisions of several additional proposals, including LB1013, sponsored by Blair Sen. Ben Hansen. That measure would modify the state Youth Rehabilitation and Treatment Center-Kearney to allow it to house male or female juveniles — but not both simultaneously — except in emergency situations.

Hardin offered an amendment to remove those provisions from the committee amendment, saying committee members would use the interim to study the implications of the proposed change.

Omaha Sen. Terrell McKinney supported removal of LB1013 from the committee package. He expressed concern that the proposal would result in youth being relocated from facilities focused on rehabilitation, treatment and education to punitive facilities that also house adult offenders.

Sen. John Arch of La Vista also supported Hardin’s amendment and emphasized the importance of taking a “measured approach” to changes to Nebraska’s YRTCs. He said proceeding with a thoughtful plan could prevent the state from repeating issues that led to the closure of the Geneva facility.

Also included in the committee amendment are the amended provisions of LB845, introduced by the committee. That proposal would combine the Alzheimer’s Disease and Other Dementia Advisory Council with the Division of Medicaid and Long-Term Care Advisory Committee on Aging to create a new Aging, Alzheimer’s and Dementia Advisory Council.

It also would create the Aging, Alzheimer’s and Dementia Advisory Council Fund to accept authorized federal funds, grants or gifts.

Hardin offered an amendment, adopted 38-0, to outline the council’s membership. Under the amendment, the council would consist of 17 voting members appointed by the governor, including medical and research professionals and those who experience dementia or care for an individual who does, as well as representatives of assisted living and long-term care facilities and each of the state’s designated planning and service areas.

The committee amendment also includes the amended provisions of two additional bills. LB733, sponsored by Ralston Sen. Merv Riepe, would rename the Division of Developmental Disabilities to the Division of Disability and Aging.

LB1144, introduced by Hardin, would expand the definition of a Medicaid health plan to establish application, submission and denial proceedings and to include service benefit plans, managed care organizations, pharmacy benefit managers and any party responsible for claims payment for a health care item or service.

Finally, the committee amendment would:
• clarify that criminal background check and fingerprinting requirements under the Uniform Credentialing Act apply to all license applications, not just initial applicants;
• remove the requirement for the Title IV-D Customer Service Unit to generate new hires equal to at least 0.25% of the local labor force;
• prohibit transfer penalties for any individual who establishes or funds an individual account in a pooled special needs trust, regardless of age; and
• eliminate references that allowed the healthy spouse of an institutionalized Medicaid applicant to formally designate certain assets and income for their own use.

A third amendment offered by Hardin, adopted 40-0, would add provisions of his LB1217 to the committee package. Those provisions would allow any Nebraska accredited or approved public, private, denominational or parochial school to maintain FDA-approved epinephrine on campus to provide first aid to students who experience an allergic reaction.

The final amendment offered by Hardin would include the amended provisions of LB1143, a measure he introduced to provide greater funding flexibility for Medicaid beneficiaries who choose to transition from institutional long-term care settings to alternative home and community-based settings.

Those provisions would require DHHS to submit an application to the federal Centers for Medicare and Medicaid Services, no later than Dec. 31, to establish a Money Follows the Person Program to assist qualified individuals in transitioning from an institutional setting to a community setting while continuing to receive long-term care.

The measure also would prohibit the average weighted Medicaid nursing facility daily rate from falling below the average weighted daily rate as of Jan. 1, 2026, unless directed by the Legislature or during a state of emergency proclaimed by the governor.

The amendment was adopted on a vote of 31-0.

Finally, Riepe introduced an amendment, adopted 39-0, to add provisions of his LB959. Those provisions would require DHHS to create a youth afterschool eligibility letter for individuals age 16 and 17 who are seeking employment in school-age or temporary nonresidential child care programs.

To obtain the eligibility letter, an applicant must submit all registry and background checks required for licensed child care staff and complete an approved seven-hour orientation.

Riepe called the measure a “practical workforce expansion tool” that would create a clear pathway for young people to enter the child care field and help existing programs meet staffing needs.

“It is a commonsense step to help expand Nebraska’s child care workforce [with] the proper safeguards in place,” he said.

Following the 42-0 adoption of the committee amendment, senators advanced LB867 to select file 47-0.