Governor Pillen Celebrates New Era For Nebraska Healthcare

LINCOLN, NE — Governor Jim Pillen released the statement below as rural and urban hospitals in Nebraska have started to receive federal funds as a result of LB 1087, the Hospital Quality Assurance and Access Assessment Act. Signed into law in 2024, this legislation establishes a funding mechanism that allows Nebraska to tap into additional federal Medicaid dollars. Previously, Nebraska was one of only a handful of states that did not accept these funds.

"Today we get to celebrate huge victory — a billion dollar funding boost — for Nebraska’s healthcare system. As federal Medicaid state payments start to go out to hospitals, we have an opportunity to be reminded of the work and coordinated effort it took to make this possible.

For years, Nebraska’s government inexplicably left this money on the table, but now we’re stepping up and going to bat for the people of our state. With this increased federal funding from the Trump Administration, we are investing in our hospitals, healthcare professionals, and the health of our state.

I’m grateful to the Legislature — particularly Sen. Mike Jacobson — for their support of this bipartisan effort. 

Our plan is more than just a big number; it’s a practical, difference-making dose of funding that is expected to help every hospital and ultimately every Nebraskan who receives care, allowing us to do more to address some of the biggest issues facing our state:

• Expanding access so Nebraskans can get the care they deserve and depend on.

• Putting our kids first by investing in our hospitals and state so young Nebraskans know they have a top-notch future right here at home

• Strengthening rural hospitals to keep communities strong and poised for growth

• Investing in mental health care and making sure Nebraskans can get the support they need

• Creating more jobs, attracting new talent to our state and increasing workforce development opportunities for nurses and other in-demand careers.

We will benefit from this investment for years to come. More than ever before, the state of Nebraska is thinking ahead and making a commitment to the health of all its people. This is a landmark victory for our community hospitals — and an especially big win for every family that calls Nebraska home."

Background:

The Center for Medicaid Services approved the initial period of the program and funding on June 27, 2025 and the Department of Health and Human Services (DHHS) took immediate action and began collecting the first round of assessments from hospitals during the month of July. 

In August, Nebraska Medicaid made directed payments to all eligible hospitals, resulting in more than $233 million in new net revenue for Nebraska hospitals. The department expects another round of payments to occur before the end of October, netting Nebraska hospitals more than $233 million more from the Medicaid program.  

In total, Nebraska hospitals will receive almost a half a billion dollars in net new revenue in just four months from federal approval of the program. Through calendar year 2027, the department estimates that Nebraska hospitals will receive nearly $3.3 billion in additional revenue as a result of this program, on top of base payments that have been paid by the Medicaid program historically.