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LB723 • 2026

The official site of the Nebraska Unicameral Legislature

The official site of the Nebraska Unicameral Legislature

Healthcare
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Introduced By: Quick
Last action
2026-04-17
Official status
Indefinitely postponed
Effective date
Not listed

Plain English Breakdown

The bill was indefinitely postponed, leaving its future implementation uncertain.

Medical Assistance Act Amendments

This bill amends the Medical Assistance Act to align with federal law regarding community engagement requirements, focusing on protecting recipients' rights and streamlining exemptions.

What This Bill Does

  • Amends the Medical Assistance Act to adopt community engagement requirements only as mandated by federal law (42 U.S.C. 1396a(xx)).
  • Requires the department to adopt all possible short-term hardship exemptions allowed by federal law for qualified counties.
  • Encourages the department to use the broadest definition of medically frail individuals to qualify them for exemptions.
  • Allows participants to self-report their compliance and exemption status as much as possible.
  • Uses various data sources, including managed care organization claims and Supplemental Nutrition Assistance Program data, to assess compliance.

Who It Names or Affects

  • People receiving medical assistance in Nebraska
  • The Department of Health and Human Services

Terms To Know

Community Engagement Requirements
Rules that require individuals receiving government assistance to participate in community activities or work programs.
Medically Frail
A condition where an individual's health is so poor that they are unable to meet the requirements for community engagement.

Limits and Unknowns

  • The bill does not specify how it will be funded.
  • It is unclear what specific exemptions and data sources will be used in practice.
  • The bill was indefinitely postponed, meaning its future implementation is uncertain.

Bill History

  1. 2026-04-17 Nebraska Legislature

    Indefinitely postponed

  2. 2026-01-30 Nebraska Legislature

    Notice of hearing for February 11, 2026

  3. 2026-01-09 Nebraska Legislature

    Referred to Health and Human Services Committee

  4. 2026-01-08 Nebraska Legislature

    Kauth FA352 filed

  5. 2026-01-07 Nebraska Legislature

    Date of introduction

Official Summary Text

The official site of the Nebraska Unicameral Legislature

Current Bill Text

Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 723

Introduced by Quick, 35.
Read first time January 07, 2026
Committee: Health and Human Services
A BILL FOR AN ACT relating to the Medical Assistance Act; to amend1
section 68-901, Revised Statutes Cumulative Supplement, 2024; to2
state Legislative intent; to provide requirements for the Department3
of Health and Human Services relating to community engagement; to4
repeal the original section; and to declare an emergency.5
Be it enacted by the people of the State of Nebraska,6
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Section 1. Section 68-901, Revised Statutes Cumulative Supplement,1
2024, is amended to read: 2
68-901 Sections 68-901 to 68-9,111 and section 2 of this act shall3
be known and may be cited as the Medical Assistance Act.4
Sec. 2. (1) It is the intent of the Legislature to adopt community5
engagement requirements only to the extent such requirements are mandated6
by federal law and with the following intentions: 7
(a) That the rights and health coverage of Nebraskans eligible for8
medical assistance are protected; 9
(b) That all possible exemptions to community engagement10
requirements are adopted and streamlined; and 11
(c) That ex parte processing is widespread and effective within the12
medical assistance program. 13
(2) The department shall implement community engagement requirements14
for the medical assistance program only as required by 42 U.S.C.15
1396a(xx) as follows: 16
(a) The department shall adopt the full scope of short-term hardship17
exemptions to the community engagement requirements allowed by federal18
law and shall request such exemptions for qualified counties;19
(b) The department shall adopt the broadest and most comprehensive20
definition of medically frail as possible; 21
(c) The department shall accept a participant's statement to verify22
compliance and exemption status to the maximum extent possible;23
(d) The department shall utilize all available data sources to24
assess compliance or exemption status, including, but not limited to,25
managed care organization claims data and Supplemental Nutrition26
Assistance Program data; and 27
(e) The department shall apply an income proxy to calculate eighty28
hours of work at the federal minimum wage and automatically deem29
participants with equal or higher monthly incomes to have met the30
community engagement requirements. 31
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(3) The department shall adopt community engagement requirements for1
the medical assistance program only to the extent required by federal2
law. 3
(4) The department shall implement community engagement requirements4
no earlier than the date required by 42 U.S.C. 1396a(xx) or the federal5
Centers for Medicare and Medicaid Services, whichever is later.6
Sec. 3. Original section 68-901, Revised Statutes Cumulative7
Supplement, 2024, is repealed. 8
Sec. 4. Since an emergency exists, this act takes effect when9
passed and approved according to law. 10
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