Families USA Submits Comments on Nebraska’s Proposed Section 1115 Demonstration Waiver

Families USA submitted comments to the Nebraska Department of Health and Human Services strongly urging the state to withdraw its proposed Sustainable Coverage Demonstration and retain retroactive Medicaid coverage to the maximum extent allowable under federal law.

Retroactive eligibility is a critical aspect of Medicaid coverage that protects people from financial hardship while they apply for Medicaid. Many individuals apply for Medicaid after an unexpected illness or injury or after they have a change in life circumstances that makes them eligible (such as pregnancy). As it may be difficult for someone experiencing major health care needs to navigate Medicaid paperwork before medical bills pile up, retroactive Medicaid allows eligible individuals to receive coverage for medical expenses that happen in the weeks before their Medicaid application date.

While the 2025 budget reconciliation law (H.R. 1) imposes major new federal restrictions on retroactive eligibility for Medicaid starting 2027, Nebraska's proposal to effectively eliminate this coverage goes far beyond federal law at the expense of vulnerable Nebraskans and the state's health system.

Families USA strongly urges Nebraska to withdraw its proposed demonstration and allow their most vulnerable residents to attain the retroactive Medicaid coverage afforded to them under federal law.