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Legislature declines to override veto on Medicaid managed‑care cost‑sharing aid (LB 9‑29)

Nebraska Legislature (Unicameral) · April 17, 2026
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Summary

An attempt to override Gov. Pillen’s veto of LB 9‑29 — permissive language allowing managed care organizations to cover co‑pays and deductibles for Medicaid enrollees — failed in the Legislature (vote recorded 22‑26 with 1 present), despite sponsors saying the change would improve access to care for some dual‑eligible patients.

Senator Frederickson opened the motion to override the governor’s veto of LB 9‑29, describing it as permissive legislation designed to give managed care organizations the option (but not the requirement) to cover cost‑sharing for Medicaid enrollees when federal law permits.

Frederickson said the bill was negotiated with Department of Health and Human Services and framed the proposal as a pragmatic way to reduce barriers to primary care, especially for dual‑eligible beneficiaries. Opponents warned about utilization and cost pressures; floor discussion highlighted that most Medicaid recipients already face very little out‑of‑pocket costs, though dual eligibles may benefit.

Following floor debate the override motion failed on a recorded vote (22 ayes, 26 nays, 1 present not voting). Supporters said they would continue to pursue ways to reduce access barriers for vulnerable patients during the interim.