Medicaid cost-sharing coverage veto sustained

An attempt to override a gubernatorial veto of a bill allowing managed care organizations to cover out-of-pocket expenses for Nebraska Medicaid enrollees fell short April 17.

LB929, introduced by Omaha Sen. John Fredrickson, would have allowed Medicaid managed care organizations to cover deductibles, co-insurance, copayments or similar cost-sharing charges on behalf of Medicaid enrollees to the extent allowed under federal law.

Lawmakers passed the bill on a 31-18 vote April 10. It subsequently was vetoed by Gov. Jim Pillen.

In his veto letter, the governor said that while the bill would not require managed care organizations to cover cost sharing, it would encourage Medicaid enrollees to “overuse the system without consequence.”

Pillen said LB929 would create an expectation that public benefits are “handouts” and send a message that enrollees will “never have any skin in the game.”

Fredrickson filed a motion to override the veto. He said many Medicaid managed care organizations already eliminate or cover cost-sharing expenses and that the bill was intended to be a “proactive” step to ensure that Nebraska Medicaid recipients have access to vital health care.

The motion failed on a vote of 22-26. Thirty votes were needed.