northplattebulletin.com · Sen. Mike Jacobson · September 6, 2026
Jacobson at the Legislature: Unlocked funds for rural hospitals - The North Platte Bulletin
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Mike Jacobson
### Jacobson at the Legislature: Unlocked funds for rural hospitals
by: Sen. Mike Jacobson - Sep. 6, 2026
This past Thursday night, the Nebraska Medical Association honored me with its Friend of Medicine award, the highest honor awarded to a non-medical provider. The award was primarily due to LB 527, which I introduced and helped pass last year.
LB 527 provides additional Medicaid funds for medical providers who are not employed by a hospital through a state and federal matching program. It generally mirrors LB 1087, which I also introduced. LB 1087 provided access to nearly $1 billion of federal funds to be provided to Nebraska hospitals that care for patients on Medicaid.
The dollars are primarily targeted at rural hospitals.
The significance of these bills is that Nebraska hospitals and independent medical providers can get better reimbursements for providing care to Nebraska Medicaid patients without needing more funding from the state Medicaid fund. Instead, the providers commit an assessment to the program that is used for the state match, which comes back to them in addition to more federal dollars.
I am honored to receive an award for carrying a bill that costs the state nothing but gives significant support for medical providers who are struggling to offer care to patients in need and who may otherwise not get timely care. It also allows providers to keep their doors open.
Many of you know that I serve on the Great Plains Health board of directors. My time there has given me a unique perspective on the healthcare system and how costs and reimbursements work.
Generally, health insurance companies pay a disproportionate amount of the overall costs for medical care. Medicare and Medicaid pay reimbursement rates well below the cost of care, which leaves health insurance plans paying higher rates. Then, when you bring in Medicare Advantage insurance products, which replace Medicare for seniors, hospitals are forced to receive even lower reimbursements.
That is why many providers have ceased accepting Medicare Advantage. Meanwhile, we need to provide services to residents regardless of where they live.
We are fortunate that Great Plains Health is located in the heart of District 42. It attracts quality medical staff and has facilities that can house the equipment needed to perform necessary procedures close to home. They also provide support for clinics and small hospitals in the region.
I see first-hand how tight operating margins are and how important these federal dollars are to make the system work. Over the coming years, we will need to be creative as to how we continue to generate the funds necessary to maintain our healthcare system in rural areas.
After spending my entire career working in banking and economic development, I have found that retaining and attracting new residents to the area is dependent on having quality available housing, medical care, educational opportunities, recreational opportunities, retail stores, and quality air and ground transportation.
Over the past several years, North Platte has rebuilt our shopping mall and brought other retail outlets to the area. Significant new housing has been and continues to be built, and the hospital has also grown exponentially. The new airport terminal opened a couple of weeks ago helps to meet the critical needs necessary to stabilize and grow the area. Although LB 527 and LB 1087 funds will help, much still needs to be done to keep our healthcare system viable in the region. But this is a great start. Thank you again to the NMA for this recognition
It is a privilege to represent you in the Nebraska Legislature, and I look forward to hearing from you regarding issues that are important to you. I can be reached at 402-471-2729 or by emailing me at mike.jacobson@leg.ne.gov.
Mike Jacobson represents Lincoln, Logan, McPherson, Thomas, Hooker and the majority of Perkins counties – Dist. 42 — in the Nebraska legislature.