Lawsuit Seeks To Remove Barriers To Medicaid Coverage

By Eric Galatas, Public News Service

March 11, 2021

LINCOLN, Neb. -- Health advocates are taking Nebraska state regulators to court over the rollout of Medicaid expansion, approved by Nebraska voters in 2018.

The lawsuit claims the Nebraska Department of Health and Human Services has created unnecessary barriers to coverage through its two-tiered benefits program.

Sarah Maresh, staff attorney for Nebraska Appleseed, said removing barriers to health care is critical during the global pandemic.

"It's really important for people to have health-care coverage," Maresh asserted. "And so this lawsuit is intended to ensure that the state follows the statute, and voters get what they voted for."

Nebraska's Medicaid expansion waiver makes the case that work requirements, noted from doctors to qualify for certain exemptions, and other measures are necessary to encourage residents to be more self-sufficient and move into employer-based or commercial health plans, which they argue will help keep the program financially sustainable.

Maresh pointed out Initiative 427 prohibits the state from imposing additional obligations on those who enroll in Medicaid coverage, including work requirements and documentation to qualify for the program's prime tier, which includes dental, vision and over-the-counter drug coverage.

She believes the lawsuit is necessary to ensure expanded health coverage is implemented the way Nebraska voters intended.

"The tiered benefit system that applies to all of the people in the Medicaid expansion group violates the state statute because of these barriers and burdens," Maresh contended. "People are having to jump through extra hoops, people are being denied benefits, and that violates the statute."

Voters approved Initiative 427 in 2018, but state officials didn't roll out its coverage program until nearly two years later.

As of Feb. 28, some 35,000 Nebraskans were enrolled in Medicaid expansion. Maresh said nearly 55,000 more residents are estimated to be eligible for coverage.

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