LINCOLN, Neb. (KOLN) — LB 958, which would require the Department of Health and Human Services to provide transparency in disability assessments, also includes a provision addressing retroactive Medicaid coverage.
The provision would require DHHS to retroactively cover health-related costs covered by Medicaid.
Retroactive Medicaid coverage allows patients who have not yet applied for Medicaid to still have their medical expenses covered. Nebraska currently covers 90 days of retroactive eligibility for all Medicaid patients.
Under President Trump’s Big Beautiful Bill, Medicaid expansion patients would be covered up to one month before applying and traditional Medicaid patients would be covered two months before applying.
DHHS is seeking approval of a five-year waiver to limit retroactive Medicaid eligibility for the full Medicaid population, according to a public notice from the department.
For rural hospitals, the loss of retroactive coverage could create even more financial strain on an already fragile system.
“Any time that we’re going to… to further restrict coverage, further restrict payment, we know that that’s going to affect both the level of access that patients have to health care services and then will also adversely affect the bottom line of our hospitals,” said Dr. Jed Hansen of the Nebraska Rural Health Association.
Rural hospital staff say they rely on being paid for services, and if retroactive Medicaid coverage is eliminated, they likely will not receive payment for care already provided.
The coverage would also help parents of critically ill newborns who do not have Medicaid at the time of birth. According to a Flatwater Free Press article, a NICU baby’s regular care costs about $4,000 a day.
In order for the bill to make its way to a final vote, it will need to be brought up for debate again before April 8.
Click here to subscribe to our 10/11 NOW daily digest and breaking news alerts delivered straight to your email inbox.
Copyright 2026 KOLN. All rights reserved.