Nebraska Seeks Federal Exemption for Medicaid Work Requirements Amid High Unemployment
In response to significant job losses due to the closure of a major plant, Nebraska is pursuing an exemption from federal Medicaid work requirements. This effort highlights the state’s proactive approach to addressing the economic challenges faced by its residents.
Nebraska Governor Pillen has instructed the Nebraska Department of Health and Human Services to apply for a federal exemption. This request comes after the shuttering of the Tyson Foods plant in January, which led to over 3,000 job losses in Lexington, a city with a population of approximately 11,000. The impact of this closure is evident as the Lexington micropolitan area, encompassing Gosper and Dawson counties, reported a preliminary unemployment rate of 18.8% in April.
Exemptions from the Medicaid work requirement, part of the “One Big Beautiful Bill Act” enacted last year, are available to states for areas where the unemployment rate surpasses 8% or is 1.5 times higher than the national average. Although states are required to implement these work requirements by January 1, Nebraska, under Governor Pillen’s directive, began enforcement on May 1. Consequently, some Medicaid recipients in the state might face the loss of coverage as early as July 31.
A spokesperson for the Department of Health and Human Services noted that the requested exemption would remain effective as long as the area’s unemployment rate continues to meet the specified criteria.
