Nebraska Families Challenge Medicaid Waiver Caps Amid Budget Cuts

Lincoln, NE — Families and advocates are urging Nebraska lawmakers and the Nebraska Department of Health and Human Services (DHHS) to reconsider proposed caps on a Medicaid waiver program serving the elderly and disabled. This waiver allows many to receive care at home rather than in institutions.

The resistance arises as part of efforts to address what state officials have described as a projected $471 million budget shortfall. Governor Jim Pillen’s proposed budget includes more than $152 million in cuts to DHHS, according to state budget documents, including reductions to paid family caregiving hours that advocates say could drop from 112 to as few as 40 hours per week.

Public Outcry

In response to these proposals, families and advocates have gathered at the State Capitol and during legislative hearings to express their concerns. They warn the changes could have devastating effects, potentially forcing loved ones into nursing homes or other institutional settings that are often more expensive than home-based care.

Ongoing Debate

Public comments on proposed updates to the state’s Medicaid home- and community-based services waiver are currently under review by DHHS. Advocates emphasize the importance of maintaining adequate support for home-based care to avoid shifting more individuals into institutional settings.

Financial and Regulatory Context

The proposed changes are part of broader efforts by the state government to manage its budget. The proposed adjustments are tied to budget negotiations that began in late 2025 and are continuing through the current legislative session.

While the debate continues, families hope lawmakers will consider the long-term impacts on Nebraska’s care system and focus on solutions that support home-based care.