Nebraska Health and Human Services Committee Holds Hearing on Medicaid Waiver for Substance Use Disorders

The Nebraska Health and Human Services Committee convened on July 29, 2025, to discuss a significant amendment to the state's Medicaid program aimed at enhancing services for individuals with substance use disorders and serious mental health issues. The proposed changes, presented by Drew Gonshowerowsky, director of the division of Medicaid and long-term care, focus on two key services that could reshape care for vulnerable populations.

The first service under consideration is the provision of short-term treatment for individuals experiencing serious mental illness or emotional disturbances. This would allow Medicaid to cover stays of up to 60 days in psychiatric hospitals, ensuring that those in crisis receive timely and appropriate care. Gonshowerowsky emphasized that this initiative aims to reduce emergency room visits and improve overall access to mental health services.

The second proposed service is the establishment of medical respite facilities in Lincoln and Omaha. These facilities would cater to the homeless population, providing a safe environment for individuals recovering after hospital discharge. The goal is to facilitate follow-up care and reduce the likelihood of readmissions, ultimately leading to better health outcomes and lower Medicaid costs.

The committee is currently in a public comment period before submitting the amendment to the Centers for Medicare and Medicaid Services (CMS) for approval. If approved, the new services are expected to take effect in early 2026.

Committee members expressed support for the waiver, with discussions highlighting the importance of budget neutrality and long-term sustainability in light of recent federal legislation affecting Medicaid funding. The anticipated changes reflect a proactive approach to addressing the needs of Nebraska's most vulnerable residents, aiming to enhance care coordination and improve health outcomes across the state.