Potential Expiration of Enhanced Premium Tax Credits (EPTCs)
The American Rescue Plan Act of 2021 and the Inflation Reduction Act of 2022 temporarily expanded eligibility for premium tax credits, making health insurance more affordable for millions, including Nebraskans. These enhancements are scheduled to expire at the end of 2025. Without congressional action to extend these provisions, many marketplace enrollees may face higher premium costs, and some could become uninsured.
What This Means for Nebraska Residents
If the EPTCs expire, health insurance premiums could increase significantly for individuals and families who purchase insurance through the Nebraska Health Insurance Marketplace.
Some Nebraskans who qualified for lower-cost or free health coverage in previous years may no longer receive the same level of financial assistance.
Small business owners and self-employed individuals who rely on the marketplace for affordable coverage should plan ahead and explore alternative coverage options.
Introduction of the Caregiver Tax Credit Act
Nebraska has enacted the Caregiver Tax Credit Act, establishing a nonrefundable tax credit for family caregivers who provide care and support to eligible family members. This act is operative for taxable years beginning on or after January 1, 2025, and requires an application filed with the Nebraska Department of Revenue.
Who Qualifies for the Caregiver Tax Credit?
- Individuals who provide unpaid care for aging parents, disabled spouses, or dependent family members.
- Caregivers who can prove financial and physical support for an eligible individual.
- The tax credit will help alleviate some of the financial burdens associated with caregiving expenses such as medical supplies, home modifications, and transportation.
Proposed Repeal of the Nebraska Health Care Certificate of Need Act
Legislative Bill 437, introduced in January 2025, proposes repealing the Nebraska Health Care Certificate of Need Act. A hearing for this bill is scheduled for March 12, 2025. If passed, this repeal could impact the establishment and expansion of healthcare facilities in the state.
How This Affects Healthcare Providers and Patients
- The Certificate of Need (CON) Act currently requires healthcare facilities to demonstrate the need for new hospitals, nursing homes, or major medical services before they can be built or expanded.
- Repealing the act could allow for more healthcare facilities to be developed, increasing competition and potentially lowering costs for patients.
- However, some argue that the repeal could lead to oversaturation in urban areas while rural communities still struggle with healthcare access.
Creation of the Nebraska Health Professions Commission
Legislative Bill 554 (LB554), introduced on January 22, 2025, proposes the establishment of the Nebraska Health Professions Commission. The bill was referred to the Health and Human Services Committee on January 24, 2025, with a hearing scheduled for February 20, 2025.
Purpose and Responsibilities of the Commission
- Evaluating Credentialing Applications: Assessing applications from health professional groups seeking new credentials or changes in scope of practice.
- Conducting Directed Reviews: Initiating reviews to determine the advisability of credentialing new health professional groups or modifying existing scopes of practice, even without formal applications.
- Collaborating with Educational Institutions: Working alongside Nebraska’s higher education institutions to base evaluations on workforce data, public health considerations, and stakeholder input.
- Public Engagement: Conducting public hearings and analyzing workforce trends to inform annual recommendations to the Legislature.
Current Status and Next Steps
As of March 5, 2025, LB554 has undergone the scheduled hearing on February 20, 2025. The Health and Human Services Committee is currently reviewing testimonies and feedback from stakeholders. The bill awaits further action, including potential amendments and advancement to the full Legislature for debate.
Implications for Nebraska's Healthcare System
- Addressing Workforce Shortages: Implementing strategies to recruit and retain healthcare professionals, particularly in underserved rural areas.
- Enhancing Healthcare Access: Improving the availability and quality of healthcare services across the state.
- Informing Policy Decisions: Providing data-driven recommendations to the Legislature to shape effective healthcare policies.
Medicaid Expansion and Potential Federal Cuts
Nebraska expanded Medicaid in 2020, providing healthcare access to thousands of residents. However, proposed federal Medicaid cuts could pose challenges to the state’s healthcare system. Nebraska, along with other states that expanded Medicaid through ballot initiatives, is mobilizing to preserve the program, recognizing its vital role in providing healthcare to low-income individuals.
What Nebraskans Need to Know
- If federal Medicaid funding is reduced, Nebraska may need to allocate more state resources to maintain coverage for current enrollees.
- Individuals who rely on Medicaid for essential health services should stay informed about potential changes and renewal requirements.
- Advocacy groups and healthcare providers are actively working to protect Medicaid expansion and ensure that vulnerable populations maintain access to care.
Implications for Nebraskans
Individuals
- Stay updated on the status of premium tax credits and explore available options during open enrollment periods to secure affordable coverage.
- Caregivers should consider applying for the new tax credit to alleviate some financial burdens associated with caregiving.
Those who rely on Medicaid should watch for policy changes and stay in touch with healthcare providers and state agencies.
Small Business Owners & Employers
- The expiration of tax credits could impact the affordability of offering health benefits to employees.
- Businesses should stay informed on legislative updates to understand how changes in tax credits and reporting requirements may affect their healthcare policies.
- Employers may need to explore alternative health benefit options to attract and retain employees.
Healthcare Providers
- Anticipating changes in Medicaid funding and potential regulatory shifts is crucial for adapting service delivery models and financial planning.
- The proposed repeal of the Certificate of Need Act and the creation of the Health Professions Commission could significantly impact the healthcare landscape in Nebraska.
- Providers should prepare for shifts in reimbursement models and potential policy changes that affect patient care and financial stability.
Final Thoughts
At Marketplace Nebraska, we help individuals and businesses navigate health insurance changes with expert guidance. If you have questions about how these updates affect you, contact Mark Schlange today to explore your options and maximize your benefits.
