Change provisions relating to nursing facility rates and establish a money follows the person program under the Medical Assistance Act

Nebraska bill LB 1143 changes how Medicaid funds are used for nursing facility care by requiring rates to be based on actual client usage and service needs, rather than fixed amounts. It mandates that the Department of Health and Human Services submit a federal application to establish a "Money Follows the Person" program by December 2026. This program would help Medicaid recipients transition from nursing homes to community-based care while maintaining their long-term care coverage. The bill directly affects Nebraska residents in nursing facilities and those eligible for community-based services under Medicaid.