Medicaid Redesign Won’t Bust Budget

By Jon Bailey,, Center for Rural Affairs 


Other states have found their initiatives to expand Medicaid similar to Nebraska’s LB 472, the Medicaid Redesign Act, have produced significant budget savings. Providing health insurance for low-income, working Nebraskans will result in state budget savings and economic growth.


Kentucky estimates their expanded Medicaid program will result in net state budget savings of $820 million from state fiscal year 2014 to state fiscal year 2021. And Arkansas estimates savings of $370 million during that time.


The savings Kentucky and Arkansas realized are available to all states. Providing health insurance coverage in LB 472 through private premiums and federal contributions will result in less need for state-funded mental and behavioral health programs. Other current specialized Medicaid programs would be to initiatives where the federal government is providing a greater contribution. Nebraska’s corrections program would achieve savings from released inmates receiving needed mental health and substance abuse treatment resulting in fewer reoffenders.


Research found that Connecticut, New Mexico, and Washington also realized budget savings in the first year of expanded Medicaid programs.


A recent University of Nebraska-Kearney study finds that over the next 10 years LB 472 would result in $1.5 billion savings in state spending (a conservative estimate; the experiences of other states argues it may be more) while bringing in more than $2 billion in federal Medicaid funding to Nebraska. LB 472 is estimated to result in $5 billion in economic activity to Nebraska.


LB 472 is not a budget buster and will result in economic growth to Nebraska.

About katcountryhub
I am a graduate of Northeast Community College with a degree in journalism. I am married to Jeff Gilliland. We have two grown children, Justin and Whitney and four grandchildren, Grayce, Grayhm, Charli and Penelope. I will be covering Lyons, Decatur, Bancroft and Rosalie and am hoping to expand my horizons as time progresses!

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