Thank you for visiting my website. It is an honor to represent the people of the 42nd legislative district in the Nebraska Unicameral Legislature.

You’ll find my contact information on the right side of this page, as well as a list of the bills I’ve introduced this session and the committees on which I serve. Please feel free to contact me and my staff about proposed legislation or any other issues you would like to address.

Sincerely,
Sen. Mike Jacobson

I continue to read articles and hear statements made at several trade group meetings regarding the so-called lost year of property tax relief. At the risk of beating a dead horse, I will attempt to once again explain the facts of LB34 and hopefully answer some of the questions people still have regarding this issue.

Prior to the passage of LB34, the State was providing property tax relief through an income tax rebate, which had been in place for several years and grew to 30% of the amount paid by property taxpayers for their public school and community college real estate taxes. Individuals were required to claim the income tax rebate when income taxes were filed the year after the real estate taxes were paid. In many cases, taxpayers who did not avail themselves of a professional tax preparer failed to claim the income tax rebate. Others did not claim it because the amount was too small, or they did not want to go through the process of looking up the legal descriptions of their land to complete the necessary claim form to be filed with their income tax return.

For example, if you paid your 2022 property taxes prior to December 31, 2022, you could have claimed the income tax rebate when you filed your 2022 income tax return by April 15, 2023. If, however, you paid the 2022 property taxes in 2023, which is common for most property taxpayers, you could not have claimed your income tax rebate until you filed your 2023 income taxes in 2024.

If you paid your 2023 property taxes by December 31, 2023, you were able to claim your income tax rebate when you filed your 2023 income tax return in the spring of 2024.

During the special session in 2024, the legislature passed LB34, which capped property tax increases by cities and counties and converted the income tax rebate to a property tax credit. There were two steps to the conversion of the property tax relief. First, the income tax rebate ended effective January 1, 2024, meaning that no property taxes paid in 2024 will be eligible for the income tax rebate.

Second, the Legislature added funds to provide for a property tax credit. Everyone by now should have received their 2024 property tax statements. You will note that, in addition to the legacy property tax credit known as the “Tier I Tax Credit,” there is a new property tax credit that was created by LB34. This property tax credit should approximate what would have been your 2023 income tax rebate (associated with only your public school property tax). The benefit of this change is it eliminates the need to apply for the rebate, thus allowing all property taxpayers to receive the credit. The property tax relief is applied in the year the taxes are assessed. This change is important because those homeowners who escrow their real estate taxes will get their escrows recalculated in the first quarter and see their house payments go down in the first quarter of 2025. Had the income tax rebate still been in place, they would not have received the property tax relief associated with their 2023 property taxes until mid-year 2025.

If someone tells you that your property taxes went up, I would ask them to look at their 2024 property tax statement.

So, what about the so-called lost year? To the extent there is a gap, it is merely due to the timing of income tax filings versus property tax payments. For those who pay their property taxes in the year after the tax is assessed instead of in the same year the property tax is assessed (e.g., paying 2024 property taxes in 2025), your relief will be “delayed” because of when you pay your property taxes. But that doesn’t mean you miss out on a year of relief. If you are paying your real estate taxes a year in arrears, you will need to pay your real estate taxes current before selling your property. You will have the benefit of the property tax credit at that time.

For those thinking there is something that needs to be “fixed” next year, they need to look no further than State expenditures for property tax relief.

Under both the income tax rebate and the property tax credit scheme, the State foots the bill for property tax relief. The State paid $560 million last year to reimburse taxpayers through the income tax rebate. This year, the State will pay $760 million in property tax credit reimbursements to counties in order to make the political subdivisions whole since the property taxpayers pay less (not more). If there was truly a lost year, the State would have a corresponding gap in its expenditures for property tax relief. It does not.

I look forward to continuing to hear from you about issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or 402-471-2729.

This past weekend, Julie and I celebrated her mother’s 95^th birthday with approximately 40 family members. I must say that my mother-in-law is an amazing woman. She lost her husband, Maurice, 33 years ago from a massive heart attack. She remained on the farm for a few years after that, then moved into a duplex in Wilber. To this day, she lives alone, still drives herself where she needs to go, and has remained sharp. She is a huge Husker sports fan and attends football and volleyball games when tickets are available. We are fortunate that she has maintained her health and is able to live independently. It was a big weekend.

I would be remiss if I did not take a minute to recognize the passing of Ryan Hunter, who passed away unexpectedly at his home on December 1, 2024, at the age of 45. Ryan was married to Marcy (Kelly) Hunter and left behind their three sons, Charlie, Sam, and Liam. Ryan served as vice-president and IT officer of Western Nebraska Bank, a bank that he and his wife Kelly helped start. I want to express my deepest condolences to the entire Hunter and Kelly families during this very difficult time.

This week will be another week for me that begins in Lincoln with several meetings at the Capitol, including a meeting of the Executive Board. On Thursday and Friday, the annual Legislative Council meeting will take place in Kearney. This meeting will be the first time that all the returning Senators and the new Senators-Elect meet to discuss the upcoming legislative session. I have had the opportunity to meet most of the new Senators at his point and continue to be impressed. I am anxious to spend more time with them this week and get a better idea of their individual priorities.

Given the pending budget deficit, we will all need to work together to find solutions to balancing the budget. There will be many who will want to slow the income tax rate reductions. This would be a bad idea and should be avoided. If we want to solve our state’s high tax burden, we need to attract more taxpayers to the state. Business leaders (who are job creators) look at income tax rates (both personal and corporate) when selecting states to locate in. Since Wyoming and South Dakota both have no income tax and Kansas and Iowa have a lower tax rate, it does not make sense to make us less competitive.

Nebraska is a great place to live, work, and raise a family, but controlling our tax burden will determine if families can afford to stay here and if others consider moving here. I have long believed that people notice how much they pay in income taxes and property taxes. It is for that reason, that we need to focus first on those two taxes. Shifting some of that tax burden to sales tax is a possible solution.

In the end, however, we need to slow the growth in spending at all levels of government. I continue to challenge every political subdivision to question each dollar spent and ask if this spending is necessary to deliver the services they were created to deliver. There are many living on limited incomes who cannot afford to stay in their homes because the property taxes are too high. Let’s think of them when approving budgets.

I look forward to continuing to hear from you about issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or 402-471-2729.

I have often said that Thanksgiving is the forgotten holiday. At one time, the day after Thanksgiving (Black Friday) marked the beginning of the Christmas shopping season. However, over the years, national retailers have begun promoting Christmas shopping the day after Halloween. This not only makes it difficult to find Thanksgiving-themed decorations but also makes the holiday itself secondary to other holidays. Don’t get me wrong, Christmas will always be the most important holiday, but taking time to be thankful for all our blessings is important. Far too many people are looking for more as opposed to being thankful for what they have. There is a difference between needs and wants. But you will get different opinions from different people.

Our family celebrated Thanksgiving in Lincoln, where we had nearly 15 for Thanksgiving dinner. Julie is a tremendous cook, and the food was great, but I now have a new appreciation for all the work that goes into preparing a feast for a large group. We have been enjoying leftovers since. Of course, we enjoyed most of the Iowa/Nebraska football game Friday night. The last minute of the game was not fun to watch, but somehow, I felt like I had seen that game last year (and the year before). I will always be a Husker fan and always look to the next season as the one that takes us back to where we need to be. Watching our amazing volleyball team fall to Penn State was also hard, but that loss may serve them well as they move through the playoffs.

This past week, the North Platte Planning Commission discussed possible regulations to limit the expansion of cryptocurrency miners in North Platte. This is a subject that caught my attention during the last legislative session. There was a bill introduced that, if approved, would have limited any steps that cities and counties might take to make zoning requirements more restrictive for crypto miners versus any other commercial business wishing to locate inside their jurisdiction. The bill was referenced to the Banking, Commerce and Insurance Committee where I currently serve as the vice-chair.

The more I studied the issues, it became clear that in addition to the noise they create and the lack of any real economic benefits (jobs, property taxes, income taxes, etc.), these facilities are huge users of power. The largest facility currently operating in the state of Nebraska is on the east edge of Kearney. That facility is housed in steel storage containers and uses more electricity than all other Kearney users combined. Yes, more than the entire city of Kearney. As these facilities continue to grow, the demand on our power grid limits efforts to attract manufacturing and other traditional firms that would locate in Nebraska. These firms hire workers, build buildings that grow our property tax base, and attract support businesses. In my mind, there is no question which industry would be preferred. The Kearney facility does pay sales taxes on the energy consumed, but the net cost to communities is out of balance.

What compounds this issue is the rapid increase in the price of Bitcoin ($100,000/coin high water mark), the growing adoption of Artificial Intelligence, and the need for computer storage for this technology. Today, most of these firms are headquartered out of state and bring no real economic benefit to Nebraska compared to the need for our electricity resource. I have been working with the Governor’s office to craft a bill to be introduced in the 109th Legislature to bring more tools to the cities and counties to control the expansion of these businesses. Since there are federal restrictions on discrimination against these businesses, we have to look at creative solutions. One option is to create a new tax that would ensure they are making the same financial contribution to communities as other businesses or, in the alternative, deter too many from entering the state. Many new facilities are growing in rural Nebraska where the owners believe no one will notice. I noticed. I will keep you posted on this issue as we move forward.

I look forward to continuing to hear from you about issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or 402-471-2729.

This week, I’m looking forward to spending Thanksgiving with my family, enjoying good food and plenty of football. I have many things to be thankful for this year, including the opportunity to serve in the Nebraska Legislature on your behalf.

One thing I constantly thank God for is the gift of building a family and life in Nebraska. We are very fortunate to live in a state that values and rewards hard work, ingenuity, and common-sense principles. My longstanding commitment to economic development, community service, and now public service through the Legislature is driven by a desire to protect our way of life. Part of that mission is advancing Nebraska’s leading industry – agriculture.

I’ve seen some misinformation going around about an emerging opportunity that is closely tied to evolving agricultural markets that I’d like to address this week: carbon sequestration. Simply put, carbon sequestration is the process of capturing and storing carbon dioxide (CO2). Some carbon sequestration happens naturally through the biological processes of plants, soil, and large bodies of water. Other sequestration happens through man-made processes.

Recently, in Nebraska, we’ve seen several companies who want to capture CO2 waste from industrial operations – mostly ethanol plants – which is then compressed and transported for injection into rock formations for permanent storage instead of being vented into the atmosphere. It is important to understand the risks and the rewards.

CO2 is a naturally occurring gas that is nonflammable, nonpoisonous, and nontoxic. CO2 is used every day in the bottling industry to give drinks their fizz, in the beef and pork industries to keep meat cold in transit, in the medical industry, and more. It is also a byproduct of ethanol production. Pipelines have been moving CO2 in ethanol production for over a decade, and there are thousands of miles of pipelines that transport tens of millions of tons of CO2 in the U.S. every year.

Despite incidents with other gas pipelines – including those mixing CO2 with other gases – a fatality has never occurred due to a CO2 pipeline incident in over 50 years of operations. The most likely effect of a CO2 pipeline incident is that the CO2 is released into the atmosphere, which is what already happens with ethanol facilities and other industrial plants. The only true risk is if CO2 settles into a low area and displaces other gases, which can only happen in certain weather conditions and is easily addressed by spraying water on the area.

Now for the rewards. Nebraska’s ethanol industry supports more than 6,200 jobs and adds over $4.5 billion annually to our economy. In recent years, Nebraska ethanol has benefited from markets for carbon credits. Now, newly proposed carbon intensity requirements in California, as well as increased access to electric and more fuel-efficient vehicles, are reducing the market for Nebraska ethanol. Fortunately, the demand for sustainable aviation fuel is rapidly growing. But, ethanol can only qualify as sustainable aviation fuel if producers find a way to make production “cleaner.” That’s where carbon sequestration comes in.

By taking CO2 from ethanol plants, compressing it, and transporting it through a pipeline to a storage location, carbon sequestration can make sure Nebraska ethanol continues to have a role in the U.S. economy. Not only is this good for the ethanol industry, but it’s also good for the farmers who sell over 750 million bushels of corn to Nebraska biofuel facilities and for the cattle feeders who use the distillers grains that come from ethanol production to raise the best beef in the world. These companies also bring construction and other full-time jobs, and millions of dollars in new property tax revenue each year that go to our local governments.

I understand why the word “pipeline” brings up a lot of fears for many folks. We are constantly balancing the preservation of our natural resources with economic advancement. Before making any judgments, I would encourage you to learn more about the carbon sequestration processes and companies operating in Nebraska.

I look forward to continuing to hear from you about issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or 402-471-2729.

This week, the Legislature is hosting the newly elected state Senators for the semi-annual orientation to the Legislature. To put this in perspective, remember our current term-limit system of two consecutive four-year terms. With 49 Senators in the Legislature, there is no even distribution of members. My current freshman class, who served in the 108^th biennium, will move to the sophomore class when the 109^th Legislature begins. There were 14 new members when my class was elected. Meanwhile, the current incoming freshman class consists of 17 individuals. The incoming senior class consists of ten Senators, and the incoming junior class has eight members. Since some of the members of each class may have been appointed, they may have more or less than eight years to serve. Additionally, some Senators were term-limited in the past and have been re-elected for another four years.

I outline the current classes to give you an idea of the limited experience this 109^th Legislature will have to work with. Several members in my class will become committee chairs this next biennium. It should also be noted that, given the size of the junior and senior classes, there will be fewer new Senators joining the Legislature in upcoming election cycles unless incumbents fail to be re-elected or choose not to run for re-election.

Although much progress has been made during the last eight years in reducing taxes and regulations, there is much more work to be done. As I have shared in the past, the rural/urban divide is alive and well, so further progress on taxes will include placing Senators from the third caucus in positions of leadership on the committees that can make a difference. It will also mean building relationships throughout the Legislature to put us in the best position to pass meaningful legislation.

I am pleased with the new western-Nebraska Senators entering the Legislature this fall. Paul Strommen, Tanya Storer, and Stan Clouse will be ready to hit the ground running. I really look forward to working with them. I also will miss working with their predecessors: Senator Steve Erdman, Senator Tom Brewer, and Senator John Lowe, respectively. We did not agree on every issue, but we always came together on the important votes. I want to thank all of them for their service to the Legislature and to greater Nebraska.

Julie and I did have the opportunity to ride in the North Platte Veteran’s Parade last week. It is a true privilege to honor the men and women who served our country in the armed forces. Every day is a good day to honor Veterans. I will be bringing a bill to try to do more for those Veterans who return home with handicaps. It is the very least we can do.

We also made the trip to Los Angeles for the USC football game with a large group of boosters and alumni who support the Huskers, win or lose. All of you know that I hate losing, but I see Coach Rhule building something great in Lincoln. I hope everyone gives him time to do just that. Our team is loaded with true freshmen, some of whom start today. The bulk of the team consists of freshmen and sophomores. (Just like the Legislature!) I see a bright future. Meanwhile, let’s get behind the team on Saturday as they take on Wisconsin. We just need one more win to be bowl-eligible, and I believe both of the last two games are winnable if they play within their ability.

I look forward to continuing to hear from you about issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or 402-471-2729.

I want to start this week by thanking our military veterans for their service to our country. I hope everyone takes a moment on Veterans Day, on the eleventh hour of the eleventh day of the eleventh month, to reflect on the sacrifices made by the men and women in our military and their families. Particularly in a time when our nation feels very divided, our service members work to protect ideals and freedoms that are bigger than any one person and span back further than any elected official’s term. Thank you for your service and sacrifice.

I also have another set of families on my mind this week. It has come to my attention in recent weeks that United Healthcare/Optum has distributed notices to many of the state’s Applied Behavioral Analyst Therapy (ABA) providers that they intend to cut Medicaid reimbursement rates by 50% or more. ABA providers deliver therapy services to autistic children in our communities. Optum contracts with the State of Nebraska to deliver approximately 1/3 of services to low-income children and youth in the state.

I am concerned about the affects these cuts will have on our communities, particularly in rural areas. Access to services – including healthcare services – is a major factor in recruiting families to come to and stay in rural Nebraska. Although providing these services sometimes comes at a cost to the taxpayer, inability to access services come at its own expense.

For children with autism, early intervention is critical. ABA therapy programs can help increase language and communication skills; improve attention, focus, social skills, memory, and academics; and decrease problem behaviors. Therapies are most effective when delivered in-person and a robust provider network cannot be replaced purely by telehealth. It is vital that we keep quality providers in Nebraska.

Without early access to therapy services provided by ABA practitioners, many children with autism cannot be successful in school and the best they can be in their adult lives. Over many years, the Legislature has chosen to invest in these life-altering services, a critical decision which will reduce the need for a long-term financial commitment in public assistance and healthcare services. It also reduces strain and expense in our school systems, which already struggle to hire and keep paraeducators and special needs teachers.

Notices about these drastic cuts have been sent to some of the state’s largest providers. Many are concerned about their ability to keep operating in Nebraska. Optum cites a rising number of claims and higher-than-average reimbursement rates as justification for the cut. To me, the increasing claims show the need for ABA services across the state. Optum is required in its contract with the State of Nebraska to maintain an adequate network of providers. I am worried that if Nebraska takes the significant step back in rates that Optum is proposing that we will begin losing therapists and providers to other states.

I understand that there has to be a balance between insurance providers and healthcare providers. I also think it’s important that the State be strategic in how it invests taxpayer dollars. Low-income children and youth with autism are not big corporations and health systems going to battle. These are some of the most vulnerable in our communities and an early investment in their care can set them up to be good students and productive citizens in the future.

It is for these reasons I have agreed to sign-on to a letter to United Healthcare that is currently circulating asking United/Optum to “show their work” on how they justify cutting Medicaid reimbursement rates for ABA services in half without affecting network adequacy. I am not convinced that these cuts won’t hurt our children and families.

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 mjacobson@leg.ne.gov.

As I sit here on Sunday afternoon, I am trying to find ways to get the Husker football loss out of my mind. I came up with two positives. First, the Huskers have a bye next week, so the odds of a loss this week is very low. Second, come Wednesday morning, all the political ads, text messages, phone calls, and emails will come to an end. Halleluiah!!

Just imagine if every political ad was fact-checked and ambiguous statements required context. That would significantly change the content of many political ads. However, it is instead up to the viewer to determine the truth from misleading statements and outright lies.

One of my favorite promises is how candidates will fix the border problem, our national debt, every other decade-old problem that ails America. If it were that easy, it would have already been solved. At the federal level, we have the Presidency, the Senate, and the House of Representatives. The President has the power to issue certain executive orders, but those are generally limited. The U.S. Senate consists of 100 members, two from each state. Control of the U.S. Senate is determined by which political party has the majority of the members. Any registered Independents can choose to caucus with one party or the other. They then are counted in the total of the party they caucus with in determining a majority. In the event of a tie vote, the Vice President breaks the tie.

It is also important to note that the U.S. Senate must confirm any appointments to the Supreme Court made by the President. If your political party does not control the Senate and the Presidency, getting a Supreme Court justice confirmed becomes virtually impossible if they have strong political leanings. Also, keep in mind that “seniority” is huge at the national level. It is seniority that determines key committee appointments and chairmanships. We all want to vote for the person but don’t forget the impact that political parties have at the national level.

When it comes to passing legislation, keep in mind that your bill must pass both houses of Congress, and get signed by the President. Since most bills are combined into several other bills before final passage, it is very possible that you will be forced to choose if the bad parts of the bill outweigh the good parts of the bill if you vote yes. But rest assured, your future opponent will be sure to point out that you voted for a bill that had the bad components in it without pointing out the positive components. That is how politics works.

At the state level, we have one house (Unicameral) that is made up of 49 state senators. Each senator represents a roughly equal number of constituents. As the state’s rural areas have lost population, the geographic size of the districts has grown. The Unicameral is non-partisan, meaning that you do not run as a Republican or a Democrat. However, political parties do play a role behind the scenes and we’re all aware of other Senator’s party affiliations. The state is divided into three caucuses. Caucus lines are determined by the lines of the legislative districts, but are relatively similar to Nebraska’s three Congressional Districts. The third caucus is represented by 16 state senators, as is the first district, and the second district is represented by the remaining 17 senators. Membership of the 14 standing committees includes members from each caucus to ensure equal representation.

If you want to pass meaningful legislation with an element of controversy, it is imperative to know that you can get 32 other state Senators to join in voting for cloture (to stop a filibuster). The battle lines are clear between conservative vs progressives, and rural vs urban. If you can build relationships, and navigate those challenges, you can get legislation passed at the state level. But just remember: If it was easy, it would already be done.

If you have not yet voted, I encourage you to do so. Every vote counts, and votes are particularly impactful at the local level. And, remember, advertisements do not always tell the entire story.

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 mjacobson@leg.ne.gov.

I want to focus my comments this week on Tax Increment Financing (TIF) and why it is the best economic development tool that the state may have ever created. I say this because TIF (if properly approved) has no cost to the taxpayer while growing our total tax base and having no impact on our current tax base.

With TIF, as the name implies, the “Incremental” increase in property taxes due to the project getting built is “divided” into two portions: the base property tax value and the increase in the incremental value. The increase portion is then used to repay the TIF bond. This division of taxes stays in place for up to 20 years (if the project is in an extremely blighted area) or when the bond is repaid, whichever comes first. The local TIF authority, the Planning Commission, and the City Council must approve all traditional TIF projects, and the City Council must approve all Micro-TIF projects.

The initial TIF bond is funded by the developer (applicant). They generally will borrow those funds from their project lender. The CRA will then issue the bond and send the funds back to the developer (applicant). The developer will also hold the TIF bond, which gives them the right to receive the increase portion of the divided property taxes resulting from the project. That bond is generally pledged to the lender as additional collateral.

If the TIF project results in the developer owning the project post-construction, the developer pays all the property taxes going forward including the incremental real estate taxes. Those incremental real estate taxes then repay the TIF bond over time. If the taxes collected along the way do not produce sufficient property tax revenue over the life of the bond, it is the developer who takes the loss.

So, let’s do a quick recap. Who funds the fund? The developer. Who receives the bond proceeds? The developer. Who repays the bond? The developer. Who takes the loss if the project does not generate sufficient funding to repay the bond? The developer.

And, if the project otherwise would not have been built, would the “increment increase” ever exist? NO.

And there is much more!

A TIF bond only captures the incremental increase in “property taxes.” All of the pre-development property tax base continues to be collected by local political subdivisions. Additionally, all new sales taxes on materials purchased for the project and all new personal property taxes go to the taxing authorities.

When using TIF for housing, we make great progress in solving our housing shortage and create jobs. The new residents moving to the area to live in the new housing will fill open jobs and generate more disposable income to grow our sales tax base.

If you sit on the board of a local taxing authority and oppose TIF, I would like to know why. Do you not want to build new housing or improve existing housing in blighted areas? Do you not want to fill the open jobs? Do you not want to grow our tax base?

I also want to mention the recent audit on the use of TIF in Nebraska issued by State Auditor Foley. I have great respect for Auditor Foley and do not disagree with some of his findings. I have always believed that Omaha has used the program in a very aggressive fashion (such as the proposed street car project). He also found that a few smaller communities do not have a good system in place to monitor the progress of the TIF bond repayment, causing some taxes to continue being divided after the bond has been repaid. However, these are not problems in every community. I know firsthand that the North Platte Area CRA has a great system in place and is in full compliance with state law.

If we want to continue our current growth path, it will be imperative that our local leaders understand TIF and how it works.

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 mjacobson@leg.ne.gov.

Over the past few weeks, I have gotten many calls and emails regarding Medicare Advantage and why Great Plains Health and several other rural hospitals gave notice that they will no longer be accepting those plans as of January 1, 2025.  One constituent in particular called me last week and asked that I provide the rest of the story behind the GPH decision to discontinue accepting Medicare Advantage plans.

Medicare is the federal health insurance program for Americans age 65 and older and provides a range of health service for seniors.  Medicare Advantage is a private plan alternative to traditional Medicare that is required to provide the same “minimum” levels of coverage as Medicare.  Insurance companies with Medicare Advantage plans contract with the Medicare program and receive payments for providing services on a per beneficiary basis.

Both traditional Medicare and Medicare Advantage must cover services that are “reasonable and necessary for the diagnosis or treatment of the illness or injury.  Under Traditional Medicare, patients receive care at Medicare-certified facilities, and the facility or the provider then submits a report of their cost to Medicare Administrative Contractors for processing and reimbursement determination.  These facility or provider claims are also subject to various compliance and auditing efforts to prevent improper payments.  Because they take place after care (and sometimes after payment) has been provided, these processes are sometimes called “retrospective review”.  Medicare Advance insurers by contract, frequently require patients and providers to obtain prior authorization before receiving care.  Over the years, the use of pre-authorizations as a tool to deny care and delay payment to providers has exploded.  The combination of denying pre-authorizations, not approving transfers from acute care to long-term care, and forcing providers to accept payment rates well below Traditional Medicare has brought us to the place we are today.  Let me be very clear, this problem was not caused by the hospitals, this issue is fully is in the hands of the Medicare Advantage insurers who are trying to increase profits at the expense of the providers and the patients.

On May 17, 2023, the Permanent Sub-Committee on Investigations launched an inquiry into the barriers facing seniors enrolled in Medicare Advantage in accessing care.  The following is a quote from that report.

“Although the Subcommittee’s recommendations in this report are targeted at regulators, this should not distract from the fact that it is insurers who are using prior authorization to protect billions in profits while forcing vulnerable patients into impossible choices.  This is particularly troubling when recent analyses indicate that Medicare Advantage is more expensive than Traditional Medicare, with one assessment concluding that in 2024, the government spent 22 percent more to fund Medicare Advantage plans than it would have had those beneficiaries been enrolled in Traditional Medicare.  There is a role for the free market to improve the delivery of healthcare to America’s seniors, but there is nothing inevitable about the harms done by the by the current arrangement.  Insurers can and must do better, for the sake of the American healthcare system and the patients the government entrusts to them”

It is a privilege to serve as your state Senator and I look forward to hearing from you on issues that top of mind for you.  I may not have all the answers, but my staff and I will work hard to find the answers.

Last week, the North Platte Area Chamber and Development Corporation held its annual meeting and awards dinner. Congratulations to all the deserving award winners; they all played a role in the continuing economic growth of our area.

I was honored to be asked to say a few words at the event. My remarks focused on the value of economic growth and the need to grow Nebraska. Clearly, Nebraska is a high-tax state compared to our neighbors. There are many reasons for that, but it has much to do with our population. Although South Dakota has half the population of Nebraska, they have no income tax and low property taxes, but charge a sales tax on many items. They also have fewer counties and fewer public schools. But, most importantly, a large portion of the sales tax revenue is collected from people who live outside the state but come to South Dakota for their tourist attractions.

If Nebraska wants to lower its tax burden by growing the state, we will need to see through the income tax cuts that are phasing down to 3.99%. This will make Nebraska competitive with our neighbors and neutralize the competitive disadvantage when recruiting and retaining employers. Lower income taxes help attract and retain employers who place a high priority on where they locate based on income taxes.

We will also need to have housing available if we want to attract workers to fill those newly created jobs. A large component of housing costs is our property tax rates followed closely by our high insurance rates. The insurance rates are higher almost entirely due to our high incidents of hail and wind losses. As a result, we will need to continue to be creative in providing incentives that have no direct upfront costs to the state. Today that incentive tool is Tax Increment Financing (TIF), where the developer repays bonds for improvements over time from incremental property taxes that otherwise would not be collected had the project not been built.

I believe that restoring some sales taxes that were exempted over the years and using those dollars for direct property tax relief would go a long way toward restoring the balance of our tax base. We can also take a page from the South Dakota playbook by collecting sales taxes from those traveling through Nebraska. Having non-residents help offset our high tax status is always welcome.

There will be more debate this coming session regarding ways to lower property taxes. The debate will likely focus on both state spending cuts and revenue growth to add to the property tax credit fund established through LB34 during the special session. Because of the focus on providing property tax relief, other spending bills will struggle to get traction in this coming session.

I also want to comment this week on questions I have received regarding the Corporate Transparency Act. This is a federal act that is designed to provide transparency regarding ownership of corporations, LLCs, and other partnerships. If you are an owner of a corporate entity created before 2024, you have until yearend to report the ownership makeup of the entity to FINCEN. Although most initially react to this requirement as more government overreach, we need to keep in mind that if we are serious about restricting foreign ownership of farmland and other businesses, we must know who the underlying owners of these entities are. Today, all that is on the public record for these entities is the list of board members and officers. These positions can easily be filled by U.S. residents willing to be paid to serve in these roles. If you have questions regarding this new law, I encourage you to contact the attorney who created your entity or your tax preparer to help you with the filing requirements.

I look forward to continuing to hear from you about issues that are important to you. It is a privilege to serve as your State Senator, and I will continue to give my full effort to make a positive difference for the District and the State. You can reach me at mjacobson@leg.ne.gov or 402-471-2729.