On February 25, 2026, Sophia Tripoli, senior director of health policy at Families USA, submitted written testimony to the Nebraska Committee on Health and Human Services, in support of Legislative Bill (LB) 777 - An Act to Provide for eligibility and reporting requirements under the medical assistance program.

Governor Jim Pillen's proposed FY 2026-2027 budget attempts to eliminate retroactive Medicaid coverage. LB777, instead, seeks to protect Nebraskans' access to coverage by requiring Nebraska Medicaid to provide the maximum retroactive coverage permitted under Federal law. Retroactive Medicaid coverage is a critical policy that shields the most vulnerable Nebraskans from financial catastrophe when they apply for Medicaid after an unexpected illness or injury (for example, after a stroke) or after they have a change in life circumstances that makes them eligible for Medicaid (such as pregnancy). More than 1 in 5 Nebraskans have trouble paying medical bills, and without policies like retroactive Medicaid coverage, more Nebraskans will face insurmountable medical debt, pushing low-income residents further into poverty.

Although the Governor argues that restricting retroactive eligibility will prompt people to enroll in Medicaid early and efficiently, this ignores the reality that Nebraska Medicaid already struggles with operational bottlenecks, slow processing, and high call center wait times, making it difficult for people to apply to Medicaid. In addition, eliminating retroactive coverage leads to uncompensated care (care provided that is not paid for), harming hospitals and safety-net providers and costing the state money.

Eliminating retroactive Medicaid coverage now would take away almost $40 million in Medicaid funds for Nebraska. It would be a compounding blow to families, hospitals, and communities already facing significant Medicaid cuts as a result of recent changes under H.R. 1 that are projected to leave 30,000 Nebraskans uninsured. Families USA supports policies like LB777, which protect retroactive Medicaid coverage for low-income Nebraskans.