RELEASE: Nebraskans file lawsuit to ensure Medicaid expansion starts in 2019

***For Immediate Release***
Monday, August 28, 2019

Contact: Magdalena Cazarez
Communications Director
Office: (402) 438-8853 Ext 119
Cell: (402) 504-0074
mcazarez@neappleseed.org

Nebraskans file suit to ensure Medicaid expansion starts in 2019

Officials have a duty to start coverage for 90,000 and bring back $149 million in Nebraska tax dollars

LINCOLN – Today, two Nebraskans filed a lawsuit seeking to ensure that officials with the Nebraska Department of Health and Human Services (DHHS) comply with the mandates of Initiative 427 and expand Medicaid coverage in 2019. Nebraska Appleseed is representing the two uninsured Nebraskans in the lawsuit. 

“Our clients in this suit are two individuals who are eligible for expanded Medicaid coverage and have serious health conditions for which treatment is critically needed. Tens of thousands of Nebraskans are experiencing similar challenges as they wait for coverage,” said James Goddard, Director of Appleseed’s Economic Justice Program. “This suit seeks to ensure our family members, friends, and neighbors receive Medicaid coverage this year and that Nebraska tax dollars are brought back to support our health care system.”

In April, Nebraska’s DHHS announced Medicaid would not be expanded until October 1, 2020. According to the lawsuit, this delay in implementation violates the duty set by the initiative to maximize federal funds to support Medicaid expansion. Based on estimates from the Department, delaying implementation until October 1, 2020 would fail to capture approximately $149 million in federal reimbursement for the program. Appleseed’s clients are asking the Nebraska Supreme Court to require Department officials to meet this duty and open enrollment for Medicaid expansion on or before November 17, 2019. This is the latest possible date to open enrollment that would allow federal funds to pay for 93 percent of the costs of Medicaid expansion, as federal reimbursement drops to 90 percent starting January 1, 2020. 

“Voters resoundingly decided that every Nebraskan must have affordable health care by passing Initiative 427 into law. The Department’s leaders have the duty to honor that vote and faithfully implement the initiative as written,” said Goddard. “Unfortunately, that is not what is happening. This lawsuit is intended to ensure the law passed by voters is followed, Nebraska tax dollars are brought back to our state, and most importantly, our clients and the other 90,000 uninsured Nebraskans receive Medicaid coverage this year.”

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