Nebraska Hospitals Warn Medicaid Work Rules Could Disrupt Care
New requirements take effect in just weeks, raising concerns about staffing and patient coverage.
Nebraska will become the first state to implement new Medicaid work requirements starting May 1, 2026 - eight months ahead of the federal deadline. However, hospitals and clinics in the state warn the changes could strain staffing, increase uncompensated care, and potentially force them to cut back on services due to the financial impact.
Why it matters
The new Medicaid work rules are part of a broader push by the federal government to encourage able-bodied adults to work or volunteer in order to receive benefits. But healthcare providers in Nebraska are concerned the sudden implementation could lead to many patients losing coverage and disrupting continuity of care, especially in rural areas that already face staffing shortages.
The details
Under the new requirements, Medicaid recipients aged 19-64 will need to work, volunteer, or meet other qualifying activities for at least 80 hours per month, unless they have an exemption. Nebraska Hospital Association CEO Jeremy Nordquist estimates that 30-40% of the 70,000 Nebraskans on Medicaid will require manual verification of their hours, adding administrative burdens. Bluestem Health CEO Brad Meyer predicts 10-15% of their 8,400 Medicaid patients could be disenrolled, potentially costing the clinic $400,000-$600,000 annually.
- Nebraska will implement the new Medicaid work requirements on May 1, 2026.
- The federal government's deadline for states to implement similar work requirements is January 1, 2027.
The players
Jeremy Nordquist
President and CEO of the Nebraska Hospital Association.
Brad Meyer
CEO of Bluestem Health, a clinic that currently serves around 8,400 Medicaid patients in Nebraska.
Jim Pillen
Governor of Nebraska, who announced the state would be the first to implement the new Medicaid work requirements.
Dr. Mehmet Oz
Administrator of the Centers for Medicare and Medicaid Services, who appeared with Governor Pillen to announce the new requirements.
What they’re saying
“There's a lot of uncertainty with our hospitals. They know that there's going to be a lot of folks who come in who just don't know what they need to do to comply with the new regulations.”
— Jeremy Nordquist, President and CEO, Nebraska Hospital Association
“Right now, we just don't know what the impact is going to be. But looking at other states who have tried it, we're estimating that it could potentially cost us between $400,000 and $600,000 per year.”
— Brad Meyer, CEO, Bluestem Health
What’s next
The Nebraska Hospital Association has created a website, MedicaidNebraska.com, to help Medicaid recipients navigate the new work requirements. Hospitals are also urging patients to keep their contact information up-to-date with the state, as the verification process will become more frequent starting in 2027.
The takeaway
The sudden implementation of Medicaid work requirements in Nebraska has healthcare providers concerned about the potential disruption to patient care, especially in rural areas already facing staffing shortages. Hospitals are bracing for administrative burdens and potential financial losses as they try to help patients navigate the new rules.
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