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Bill to strengthen Medicaid managed-care oversight draws broad provider support, DHHS raises concerns
Summary
Senators heard proponents urge LB380 to require greater transparency and statutory guardrails for managed care organizations, especially on rates, parity and network adequacy. DHHS and MCO trade groups warned the bill could limit contractual negotiation and add reporting burdens.
The Health and Human Services Committee heard extensive testimony on LB380, a bill introduced by Sen. John Frederickson to tighten statutory oversight of NebraskaMedicaid managed-care organizations (MCOs), with proponents arguing the measure is needed to protect providers and patients and opponents warning of unintended operational consequences.
LB380 would add explicit statutory expectations for MCOs, requiring that Medicaid providers be paid at rates set or funded by the Legislature, that contract changes be communicated to providers, and that MCOs maintain parity between behavioral and physical health services, make utilization-review policies public and comply with generally accepted standards of care.
Supporters included the Nebraska Association of Behavioral…
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