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Rural providers urge cost study after Medicaid rate cuts that reduced ABA network capacity
Summary
LB724 would commission a cost study of behavioral health rates to inform Medicaid reimbursement. Providers and families said recent rate reductions and reimbursement changes have led some clinics to stop serving Medicaid patients, worsening access in rural Nebraska.
Sen. Dan Quick introduced LB724 seeking a cost study to determine appropriate Medicaid rates for behavioral health, including ABA services, after recent administrative rate reductions that providers said reduced network participation and access in rural areas.
Multiple clinic representatives, provider associations and family members testified that recent Medicaid rate cuts led to clinic exits from MCO networks, longer wait lists, and families facing travel and work disruptions to access therapy. Speakers said prior cost modeling (2016–2018) had informed adjustments and urged a new study to create transparent, evidence‑based rate recommendations.
Proponents framed the study as a tool to quantify actual costs—staff wages, training, materials, authorizations and overhead—so the Legislature can set rates that sustain provider capacity across Nebraska. Senator Quick said the goal is to preserve access across rural and metropolitan areas and to prevent further provider attrition.
The committee heard personal accounts from grandparents and clinics describing children losing services and clinics unable to remain in network. No opponents testified; discussion focused on study cost, scope and whether existing studies could be updated.
