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Nebraska Work Rules Cut Medicaid Largely Through Unanswered Paperwork

Federal direction to tighten how Nebraska verifies medical frailty could force more people to prove work and raise the risk of additional coverage losses.

Overview

  • A KFF analysis of state data found most early coverage losses came from people not returning verification notices rather than failing to meet work requirements.
  • When automatic checks fail, Nebraska mails a declaration that enrollees must return within 30 days to avoid denial, creating a single procedural choke point.
  • Among those who did document qualifying activity, the large majority proved compliance with reported work hours or income rather than education, volunteering, or training.
  • CMS has told Nebraska to change how it verifies medical frailty, a move that could shrink the frailty exemption and increase the number of people who must supply proof of work.
  • Data gaps and low use of short-term hardship exceptions leave open whether nonresponders were unaware, unable to document, or actually ineligible and raise questions about downstream effects for hospitals and coverage stability.