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Senators adopt amendment changing tax basis in health-premium measure; LB527 advances

2469199 · February 28, 2025
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Summary

Senators adopted AM373 to LB527, which shifts the tax basis for a health-premium levy from prior-year written premiums to calendar-year 2026 written premiums; the amendment also grants DHHS rulemaking authority. The bill advanced to engrossing.

Senators adopted AM 3 73 to LB527 on select file, a sponsor-led amendment that modifies the tax basis and clarifies administrative authority for a health-premium tax in the bill.

Senator Jacobson, who introduced AM373, said the amendment changes the tax base: instead of using 2025 written premiums for health maintenance organizations (HMOs) as of Jan. 1, 2026, the tax would be based on calendar-year 2026 written premiums within that year. Jacobson said the change removes retroactive exposure and clarifies potential application during Department of Health and Human Services (DHHS) pre-procurement of managed care organization (MCO) contracts. The amendment also grants DHHS authority to adopt rules and regulations to implement premium collection consistent with existing practices.

Several senators voiced support; Senator Mikaela Kavanaugh urged constituents to contact the federal delegation about broader federal funding issues that affect Medicaid, which Jacobson referenced in floor remarks. The amendment was adopted on the floor, and the bill was advanced to engrossing.