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Advocacy group sues Nebraska over two-tiered Medicaid plan

Nebraska State Capitol Building
Posted at 4:22 PM, Feb 26, 2021
and last updated 2021-02-26 17:22:45-05

OMAHA, Neb. (AP) — Advocates for low-income residents have asked a judge to strike down Nebraska's two-tiered Medicaid expansion system that imposes extra requirements to qualify for dental, vision, and over-the-counter drug coverage.

The group Nebraska Appleseed filed the lawsuit Thursday against the Nebraska Department of Health and Human Services and its top administrators.

The lawsuit alleges that agency officials exceeded their legal authority when they created a two-tiered system: a "basic" plan that covers physical and behavioral health care services, and a "prime" plan that also includes dental, vision and over-the-counter drug coverage.

The two-tiered system only applies to people who qualify for expanded coverage, not those who received benefits through the traditional Medicaid program.