Nebraska Legislature Begins To Investigate Changes to State Medicaid System

Nebraska senators on Aug. 26 attended the first of several informational meetings on possible ways to reform the state's Medicaid system, the Lincoln Journal Star reports. On June 30, 2003, about 25,000 state residents will lose their Medicaid benefits under a new law, which also cuts the state's Medicaid budget by about $25.3 million. The state is looking for further ways to cut costs. Nebraska contributes about $400 million to the state's $1.2 billion Medicaid budget, with the federal government supplying the remainder, and costs are expected to increase by about 12% per year unless the state takes measures to reduce spending or eligibility. Nebraska will investigate further reductions in payments to doctors and hospitals, cuts and freezes in program administration and additional copayments for prescription drugs. The state might also investigate implementing tighter controls on fraud and abuse, expanding managed care options and instituting disease management programs. Some states have reduced dental benefits under Medicaid, while other states have sought to restrict home health, podiatry, chiropractic, optometry, psychological and translator services to save money. However, what works in one state might not work in another because "each state has a different starting point and different demographics," Brenda Jackson of CMS said. State Sen. Jim Jensen has said he will create a task force to further study the state's Medicaid problem (Hambleton, Lincoln Journal Star, 8/27).