This week, Senators will be convening at the University of Nebraska Innovation Campus for the annual Legislative Council meeting. This meeting will be the first gathering of the entire legislature since the session adjourned on June 1. The primary purpose of the meeting is to let the Speaker address his agenda for the coming session and to allow members of the Legislature to discuss issues they may have before the session begins on January 3, 2024. The meeting is intended to be informational and allow for a more private social setting for members to get reacquainted.

One of the items on the agenda will likely be to discuss some of the rule changes proposed by Senator Erdman, who serves as chair of the Rules Committee. I appreciate the time Senator Erdman has spent developing these potential rule changes and look forward to working with him and the rest of my colleagues through the process. Although the details of the rule changes are significant, I will outline the major rule changes proposed and the impact that these changes could have.

The first proposed rule change would deal with motions for cloture. A motion for cloture is a motion to end debate and proceed to a vote on the pending item before the body. It requires 33 votes to pass, and may only be brought after “full and fair” debate. Currently, motions and amendments are taken in the order in which they are offered, and prior amendments and motions must be resolved before the next can be considered. Moreover, no amendments can be offered once a cloture motion is passed. The proposed change would make it possible for the introducer of the bill under debate to file amendments that move forward in the queue and to prevent meaningful amendments from being blocked by the opposition to prohibit improvements to the bill that gain support for the modified measure. The proposed change, if adopted, would also allow for a cloture motion to be offered without waiting for a specified number of hours of debate to occur first. These would be welcome changes to our rules.

Another proposed rule change would address the rules for “dilatory” motions and amendments. The rule book currently addresses dilatory rules but does not sufficiently address how to recognize and deal with a motion that is intended to simply waste time. The proposed rule would require the Speaker to agree that a motion is worthy of debate before the motion or amendment can be filed with the Clerk. Introducing non-substantive motions and amendments is a common filibuster tactic. A Senator who introduces a motion or amendment is given 10 minutes to open on the proposal, may speak three times for five minutes, and is then allowed a 5-minute close. In short, you could waste 30 minutes for each motion or amendment you introduce, even if no one else participates in the debate. The rule change would still allow for filibustering with substantive motions and amendments while eliminating time-wasting tactics.

Another proposed rule that caught my attention is a proposal to close executive sessions to the press. Currently, all committee hearings are open to the public, and every bill introduced is guaranteed a hearing. However, after all the “public” hearings are completed, the committee chair will call executive sessions to allow committee members to debate the various bills and vote on bills they wish to advance to General File. Currently, only the committee members and the press are allowed to attend these meetings. Many believe that if no other Senators are allowed to attend these meetings, the press should also be excluded. This would allow committee members to be more candid and confidentially debate bills before their committee. Members would certainly be allowed to discuss the issues raised in the closed session after the meeting, but there would be no press in the room during the debate.

Since these proposed rules have been distributed to all the Senators, I expect that there will be some interesting discussions at the Legislative Council meeting later this week.

I look forward to continuing to hear from you regarding 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 by calling my legislative office at 402-471-2729.

Last week, I attended the fifth meeting of the Governor’s property tax working group. At each meeting, the group makes more progress in reaching a consensus on a plan to bring to the legislative floor in the next session. I continue to be impressed with the determination that the Governor demonstrates to control expenses and reduce taxes. Everyone around the table knows this is a huge priority, and we must develop a solution that reduces property taxes while keeping our tax system as fair as possible. 

I am still convinced that the best way to improve our tax equity is to have property tax, income tax, and sales taxes each generate equal amounts of tax revenue. As I have mentioned in the past, property taxes (prior to applying the income tax credit) generate approximately $5 billion annually. All these dollars are collected and retained by local political subdivisions. Income taxes generate approximately $4 billion at the present time. All these proceeds go to the state. Sales taxes generate approximately $2.3 billion annually for the state coffers due to the state’s 5.5% sales tax rate. Local political subdivisions can add a “local option” sales tax of up to 1.5% that they can then retain locally to help offset property tax collections. 

You can see from these numbers that property taxes account for more than one-third of the tax collections from these revenue sources. If the state were to increase the state portion of the sales tax by increasing the rate, eliminating exemptions, or a combination of the two, the state would then be able to direct more dollars to property tax rebates to lower further the net cost of local property taxes collected. It seems to me that we would need approximately $1 billion to achieve this result. In the end, property taxes could be reduced by as much as 25% from their current levels, and local political subdivisions would still retain their local tax collections. 

Some promoted two petition initiatives that would change the Nebraska Constitution to eliminate all forms of taxation except a consumption tax or excise taxes on all new goods and services. The petition language is both very broad and very restrictive. The petitions contain no language regarding how the new tax scheme would be implemented but clearly state that only groceries would be exempt. They leave broad implementation discretion to the Legislature, yet tie the Legislature’s hands when it comes to allowing for exemptions for ag equipment, and many other items that are currently exempt.

In the end, I believe that there are three questions everyone should ask themselves prior to signing these petitions. First, who would be paying more in taxes? The promoters cannot provide that information, yet logic holds that we cannot all save on our tax bill and still produce enough revenue to fund the state and local budget demands. Second, what assurances do those who live in rural Nebraska have that they will continue to receive the funding necessary to support our local political subdivisions? If all tax collections go through the State, then someone in Lincoln will be charged with redistributing the funds throughout Nebraska, essentially eliminating local control over taxing and spending.

And finally, can the petition language be realistically implemented? The two ballot initiatives are simply one-line initiatives and call for implementation by January 1, 2026. The details of how the tax would work would need to be developed by the Legislature, and implementation bills introduced in the past have never advanced beyond the first round of debate and often have not even gotten out of committee. Therefore, you can expect strenuous debate and substantial changes from those bills if the initiatives were to be adopted by the voters. Moreover, the Legislature would need to pass implementing language and the structure for such a tax in 2025, and that is likely to take many months. This would mean businesses will have a very limited time to update their systems to allow the collection of the new tax, so limited it may be physically impossible. 

It might also be important to note that only 16 of the 49 state Senators reside in the Third Congressional District. Although there are some rural Senators in the First Congressional District, urban-focused Lincoln and Omaha Senators could control the debate and the final votes. If the funding falls short over the years, what parts of the state would likely suffer? There is real merit to having local control over your property taxes that stay in your local taxing authority. 

In the end, no matter how we fund our local political subdivisions, if we cannot get a handle on controlling expenses, we will not be able to sustain the funding necessary to fund our budgets fully. Since property taxes are only assessed locally, it begins with our locally elected boards to hold the line on spending. We do it in business and must do the same thing in government. 

I look forward to continuing to hear from you regarding 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 by calling my legislative office at 402-471-2729.

Growing up on a farm, I had the opportunity to learn what it was like to be a part of making things grow. Whether it was growing crops or raising hogs and cattle, I always found satisfaction in being a part of the process and experiencing a sense of accomplishment when everything came together. Although I played a role, I always knew that many other people and external factors played a huge role as well. Some things were obvious (getting timely rains), and other factors were more subtle and maybe included others working with me to get the desired outcome. This carried over for me when it came to growing a business and helping to grow a community. You play a role, but it takes a team, some risks, and some blessings along the way. It is for that reason that I always appreciate those who work behind the scenes to move our communities forward.

This past week, the North Platte area lost one of those leaders, Andy Olson. Andy played a huge role in not only growing a very successful agricultural enterprise but also making a huge impact on the economic development of our region. And he did all of this with very little fanfare. He and Bob Lundeen were two individuals who quietly worked behind the scenes to make a major influence on our area’s economy. Unfortunately, we lost both of them this year. They will be truly missed. Fortunately, like most great leaders, they had a strong group of leaders behind them who would not only continue their own endeavors but also continue leading development for the region. Their impacts were felt and appreciated, and my prayers continue to go out to their families and friends.

I was able to spend some time in Lincoln over the past couple of weeks, including meeting with Speaker John Arch to discuss his plans for the coming legislative session. I have enjoyed watching the Speaker operate and have great respect for his management style. He is a very principled individual who has good instincts for what needs to be done and how to make it happen. I am very confident that we will have a very productive session beginning in January because of the work he is doing now to plan for what’s ahead.

Although many state Senators have seen each other at various events and legislative hearings, we will have our first official gathering on December 7 and 8 when we meet for the annual Legislative Council. This is an event where all Senators get together for some socializing and early planning for the 2024 Session, which begins on the first Wednesday of January. This will also be a good first look at pending issues we will likely face in the next session and get a good feel for individual Senators’ priorities.

As many of you know, Governor Pillen appointed Senator Tom Briese to fill the State Treasurer position vacated by John Murante. As a Senator, Briese chaired the Executive Board and served on the Revenue and Education Committees. He was not eligible to seek re-election in 2024 due to term limits. There were many applicants for the position, but in the end, Governor Pillen appointed Fred Meyer to serve as District 41’s new Senator. Julie and I were at the UNL at the same time Fred attended, and we have been members of Ag Builders of Nebraska for several years since then. Fred’s business and agricultural background as a farmer and cattleman will be a great addition to the Legislature, and I look forward to working with him!

Please continue to keep me apprised of 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 by calling my legislative office at 402-471-2729.

Each week, I have been writing to update you on current legislative events and issues important to the constituents in District 42. This week, I hope you will allow me to take a different approach and share with you the personal issue we dealt with this week.

This past Thursday, November 9, we watched our dog Sparticus take his last breaths of life before passing on. I know many of you knew Sparty, but he has taken us on an amazing journey over his lifetime. Sparticus was a 17-pound West Highland White Terrier (Westie) born on March 27, 2009. Our son Josh adopted him as a puppy when he was still in college and raised him until about 8 years ago when he moved to an apartment that did not allow pets. That is when Julie and I stepped in to care for Sparty full-time.

I must admit, we were not wild about raising a dog at that point in our lives, but it did not take long for Sparty to work his magic and win over our hearts. Sparty had a huge personality. He was strong-willed, full of energy, and amazingly smart. Unfortunately, this all made it much easier for him to train us. I remember coming home from work each day only to have him greet me at the door to the garage. Once my briefcase was down and I had properly acknowledged his presence, he proceeded to go to the front door so he could take me for a walk. I never knew if we were going east or west once we got to the sidewalk, but there was no doubt that Sparty knew exactly where we were going, and my opinion was not needed.

When I had my knee replacement back in January 2019, Sparty needed to go to daycare for two weeks so I could let my incision heal. Fortunately, Dawn Brosius was opening Paws-a-Palooza, and Sparty became her first customer. Sparty made it his mission to teach Dawn how to operate the facility from his perspective. Although we had rented Sparty his own personal space, he somehow convinced Dawn to allow him to sleep with her in the living quarters at night. This arrangement also included allowing him to sleep on the pillow.

But it didn’t end there. Since the business had just opened, their dog numbers were just beginning to grow, so Sparty convinced Dawn to allow him to stay out front with her during the day so he could greet everyone who came and went. When not working the front door, he would sleep at Dawn’s feet under her desk when she did bookwork. Dawn had a new best friend. As the years went by, Sparty managed to grow close to all his caregivers, but always wanted to be with Dawn when she was working. This closeness with the staff continued even after the ownership change to Lucky Dogs. What a great asset this facility is to dog owners in this area.

Sparty really enjoyed working with Julie in our backyard. There was a large area for him to explore and Julie had a variety of plants and shrubs for him to experience. He also took the opportunity to occasionally chase the neighbor’s cat, catch small rabbits, chase the large ones, and engage any moving thing he came in contact with. Like many smaller dogs, Westies are known for thinking that they are much larger dogs. This was made clear when Sparty decided to chase a large wild turkey that suddenly flew over our backyard fence one day. Sparty immediately chased down the turkey grabbing a mouth full of tail feathers when he caught up to the turkey. To his surprise, (and Julie’s) the turkey did an immediate 180 and took after Sparty, running full speed to the sliding door which Julie had managed to close behind Sparty just in time. Over the years, he and Julie spent hours in our backyard, where he never let Julie get too far out of his sight.

Over the past several months, it became clear to us that Sparty was slowing down, losing much of his hearing and eyesight, and he began experiencing seizures. For a dog who seemed almost indestructible, he was beginning to show his age, and he wanted to be by our side continuously. While we are glad he is now at peace, we miss him immensely.

I cannot begin to properly thank Dr. Ron Green and his staff at Heartland Vet Clinic, all the staff at Paws-a-Palooza (now Lucky Dogs), and everyone who has reached out to us to offer their condolences. Our pets are very special members of our families, and the impact of their loss is real. As we move into the holiday season, I hope we all take a moment to reflect on how important each of your family members is to you. We never know how much time any of us have remaining on this earth. Take some time to enjoy life and show your gratitude for those who are having a positive impact on your life.

I will be back to you next week for the latest in Legislative hearings and how the upcoming session is shaping up.

I look forward to continuing to hear from you regarding 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 by calling my legislative office at 402-471-2729.

I want to start my comments this week by taking a moment to honor our Veterans in advance of Veterans Day.

Veterans Day was established in 1926 to acknowledge the sacrifices of those who served in America’s military. Its mission is different than Memorial Day, which was established to remember those who gave their lives in the line of duty.

A Veterans Day National Ceremony is held every year on November 11, at Arlington National Cemetery in Arlington, Virginia. The ceremony begins at 11:00 a.m. when a wreath is laid on the Tomb of the Unknown Soldier before a parade of colors by veterans’ organizations and remarks from dignitaries. The time and date of this observation coincide with the cessation of fighting on the Western Front of World War I at 11:00 a.m. on November 11, 1918. Veterans Day is easily remembered as being observed on the eleventh hour of the 11^th day of the 11^th month. Each Veterans Day should be a time when Americans stop and thank the brave men and women who have risked their lives for the United States of America.

Please take a moment this weekend to say thank you to a veteran.

As your State Senator, I continue to look for ways to make the lives of our Veterans better. I am hopeful that we can make changes to the Homestead Exemption to allow Veterans to receive a property tax exemption equal to their degree of disability as opposed to the current law that only allows those Veterans who are 100% disabled to receive a Homestead Exemption. I am also working with Lincoln County Commissioner Micaela Wuehler to expand access to emergency funding for all veterans, not just those who served during a time of war. I am proud that so many of our elected leaders in Nebraska make showing our appreciation for veterans a priority.

I continue to spend some time in Lincoln each week, attending interim study hearings and meeting with stakeholders to fine-tune legislation for the coming session. Last week, I met with the health insurance lobbyists to continue negotiating a compromise to move LB32 (related to Medicare supplement insurance policies) forward this session. As with most legislation, there are many factors to consider, and in the end, finding common ground and working honestly to resolve obstacles is important if we want to get the best outcome. I am very pleased that these discussions are progressing, and the industry is genuinely interested in finding a solution. My goal is to get those under age 65 with disabilities covered by insurance and a workable solution for those under age 65 who suffer from End State Renal Disease (ESRD). At the same time, it’s also important to keep premium costs low for the remainder of those covered by Medicare Supplement policies. I am optimistic that we can find a path forward.

This week, I will be attending a legislative hearing for LR242, which will examine methods to promote the development of a competitive electric vehicle charging market in Nebraska and the creation of an electric infrastructure to support such a market. I plan to work with Senator Eliot Bostar to introduce a bill this coming session to gain access to Nebraska’s allocation of the federal National Electric Vehicle Infrastructure (NEVI) funds to build out charging stations, as well as other measures that might be necessary to protect road funding and regulate charging infrastructure. The timing of changes to make our federal funding request is of the essence, so having a hearing now will help resolve the issues between all the interested parties so that the bill can move quickly this coming session.

Finally, I had the pleasure of attending the Sandhills Symphony Legacy Concert on Sunday, where the group celebrated 60 years of music. Julie has played bassoon in the Symphony for many years, and our children also participated when they were in high school. The Symphony also honored Kay Toillion, who has taught music and string performance for decades. Our daughter, Mary, was fortunate to have Kay as a violin teacher growing up, and she is just one of the children Kay has touched with her love of music. Educators have a tremendous capacity to shape our children, and we are blessed to have many wonderful teachers throughout District 42!

I look forward to continuing to hear from you regarding 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 by calling my legislative office at 402-471-2729.

Once again, I spent most of last week in Lincoln, attending hearings and working with my legislative staff on our plans for the coming session. One of the hearings that I attended was for LR171, which I introduced to study the need for rebasing Medicaid funding for behavioral health.

I also attended the hearing for LR203, which my friend and fellow Senator Myron Dorn introduced to study how the state of Nebraska can ensure it has effective emergency medical services in rural communities. Although this was a legislative study, it will likely result in a bill to tackle the issues facing EMS in rural Nebraska. Nebraska is one of three states with the highest rates of rural residents living more than a 25-mile drive from first responders. This is glaringly apparent when you consider our rural residents in District 42. This is an everyday circumstance for residents in Thomas and Hooker Counties. To add insult to injury, current EMS personnel are aging, and finding their replacements is increasingly challenging.

In addition to challenges in recruiting first responders, training is also a barrier. Consider, for example, that even volunteer EMTs must obtain 60 hours of training over six months, and they need continuing education to maintain licensing. At last count, there were approximately 13,000 volunteer firefighters and about 15,000 volunteer EMS providers. However, the state has lost 60 EMRs and 60 EMTs over the past five years. This issue is real, and I believe needs to be dealt with sooner rather than later. I plan to join Senator Dorn in getting legislation introduced to begin addressing this problem. Rural Nebraska cannot grow if we cannot provide quality, affordable health care.

In addition to attending the hearings at the Capitol, I also spent time with my legislative staff reviewing our plans for the next legislative session. Given the number of bills introduced during the last session and that we are now entering the short 60-day session in 2024, it will be very difficult to get new bills through the process, especially if they are controversial or have a fiscal note. As we enter the next session, it is important to have a clear path forward for each bill you choose to back because any bills still unresolved at the end of the 2024 session will automatically die.

As I have previously announced, my personal priority bill in 2024 will be LB31, the two-person train crew bill. I also plan to move the second bill I introduced in the last session, LB32, related to Medigap coverage. LB32 stalled in committee due to the intense objections by the insurance industry. We reached an agreement that they would personally work with me between sessions to work out a compromise. They have offered a compromise, and I’m optimistic we can reach an agreement before January. In the end, I want to get this bill included in the Banking Commerce and Insurance Committee priority bill to ensure that it passes this year.

I have several other pieces of Legislation that are also on my radar. First, we must improve Medicaid funding so medical providers can provide the necessary care for those in need while keeping their doors open. This includes hospitals, nursing homes, assisted living facilities, behavioral health providers, and physicians providing care to patients covered by Medicaid. Second, it is time to consider assisting communities dealing with the problems resulting from dead and dying trees due to the Emerald Ash Borer. Finally, I would like to see changes to the Homestead Exemption. I believe disabled veterans should receive a prorated Homestead Exemption if they are not 100% disabled in an amount equal to the percentage of their disability. I also want to significantly raise the maximum home value to qualify to protect seniors who have lost their Homestead Exemption because their property valuations increased.

Julie and I closed out the week by attending the annual Seneca Turkey Dinner & Bazaar. We had the opportunity to attend last year and decided it was such a great event we had to make it an annual trip! It did not disappoint. Just another example of how a small, unincorporated village can bring area residents together for great food and fellowship. Amazing event!

I look forward to continuing to hear from you regarding 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 by calling my legislative office at 402-471-2729.

I spent this past Thursday in Lincoln at the Governor’s “Property Valuation Roundtable,” along with fellow western Nebraska Senator Teresa Ibach. This round table is a cross-section of business leaders and State Senators working on a more equitable property tax plan that better shares the tax load between property classes of real estate and equitably distributes the tax burden among all taxpayers.

As I pointed out in a previous article, three primary types of taxes in the state fund most of the needs of state and local taxing authorities. Property taxes account for the lion’s share of the $12 billion needed to achieve this funding. Approximately $5 billion is generated from property taxes, just under $4 billion from income taxes, and another $2 billion from sales taxes. The balance is raised from inheritance taxes, gas taxes, excise taxes, etc.

It is important to remember that ALL property taxes are assessed LOCALLY. The State does not receive property tax revenue.

All property taxes are assessed by local political subdivisions, the largest being the public school system. Each local political subdivision with taxing authority has a locally elected board that resides in the subdivision. Because of that, you, the local voter, can elect who represents you on that board. Those boards, in turn, select who will lead those organizations. The system was set up that way so that those living in these political subdivisions decide how much they want to spend.

Cities and villages can also charge a sales tax (referred to as a “local option sales tax”) since that tax is above and beyond the 5.5% charged by the state. The local option sales tax stays with the municipality and allows them to offset some of their property tax reliance. Counties are the sole beneficiaries of inheritance taxes, which can help offset their property tax ask. The State of Nebraska relies primarily on personal and corporate income taxes and sales tax (5.5%), as well as user fees, to fund the bulk of its funding needs.

From the time that the sales tax was first introduced in Nebraska, the plan was to have sales, income, and property taxes each generate approximately 1/3 of the total funding needs. However, over the years, sales taxes have lagged and property taxes have soared, causing the imbalance we have today. The Governor’s working group is working on a plan that will bring balance back to the system.

The Legislature has already begun this process by taking Community Colleges off the property tax rolls and by providing more direct aid to public schools to help reduce their property tax asks. Additionally, the State provides a property tax credit (shown on your property tax statement) and an income tax rebate that equaled 30% of the amount you paid in property taxes to your local public school district and community college last year. You receive the rebate even if you do not pay state income taxes. With these two credits, real progress has already been made. However, we believe that there needs to be at least another $1 billion in property tax savings to balance property, income, and sales taxes.

I know that there are some who want to abandon our current forms of taxation altogether in exchange for a consumption tax. Although I understand the appeal of this concept, I have several concerns with the EPIC tax proposal being circulated. First, this concept is totally untested, yet the ballot initiative would mandate it in our constitution. Second, there is conflicting data about how high the consumption tax rate would have to be, particularly if we begin to lose businesses that can operate for less in another state. Third, although implementation will be up to the Legislature, it has been suggested that one or two unelected commissions would decide how the revenue would be distributed across the State. I am concerned about totally eliminating local control for budgeting and spending. When the cost per student in rural schools is higher than the urban areas, can we really expect fair funding? What about our roads? Will we be forced to consolidate our county seats as well as our schools? Who would you complain to if an unelected board was in charge? If we want to consolidate to control costs, I would prefer to make that decision locally.

I am sensitive to the property tax burden felt by Nebraskans, particularly our agricultural producers. I truly believe the Legislature has made large strides in recent years in addressing this problem. We should give some time for these measures to take effect, and continue exploring ways to broaden our sales tax base before we take a drastic measure like changing our constitution.

I look forward to continuing to hear from you regarding 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 by calling my legislative office at 402-471-2729.

Last week, I made you aware of issues facing the property and casualty insurance industry and the real impact these issues are having on constituents throughout the District. This also includes the numerous insurance agents who work every day to help their clients stay insured and at the best rates possible.

This week, I want to focus on the health insurance industry and the never-ending struggle of balancing the cost of insurance coverage with the cost of delivering quality healthcare. I have had the opportunity to serve on the board of Great Plains Health over the past few years. It has been a great experience and learning opportunity that has better prepared me to serve in the Nebraska Legislature.

As I reflect on my long banking history, I have always known that economic development begins with having quality, affordable healthcare available. The North Platte region is fortunate to have such an amazing facility to serve everyone in District 42 and beyond. Think about how you would feel if we did not have a highly rated emergency department available or an outstanding cancer center, a fantastic neurosurgeon, and a supporting team of doctors and nurses who care about their patients. But this kind of quality health care is expensive to provide.

After complying with the mountain of compliance requirements, hospitals that accept Medicare and Medicaid provide care to patients but are reimbursed at rates well below their costs. Couple that with the fact that many uninsured patients come to the emergency department daily who have no means of payment. In the end, it is those who are covered with health insurance who make up the difference in funding necessary to operate at a minimal profit.

To reduce the costs to policyholders or employer-sponsored health care plans, insurance companies provide “Medicare Advantage” plans. It is important to note that Medicare Advantage plans are, in fact, private insurance products, not Medicare. If you purchase a Medicare Advantage plan, you are no longer enrolled in Medicare. You can always cancel the Advantage plan, but you are not automatically eligible to enroll in Medicare. In fact, your premium could very likely be higher if you later apply for Medicare. A Medicare Supplement policy is also an insurance policy, but it is truly a supplement to Medicare, and you remain enrolled in Medicare.

So why are insurers pushing the Medicare Advantage plans? The answer is simple. Medicare Advantage plans are highly profitable policies that limit coverages, primarily through “pre-authorization” requirements. For example, if a patient is admitted to the hospital and the hospital administers treatments prior to receiving a pre-authorization (which can sometimes take days), then the provider does not receive any payment for their services. This leads to delayed treatments, or the hospital or other providers not getting paid. As a result, many providers have chosen not to accept Medicare Advantage as a payment source. When this happens, those insured by a Medicare Advantage policy must travel further from home to find a provider who accepts this coverage. Even though more employers are moving to Medicare Advantage policies to save costs, we are seeing more and more providers move away from accepting this type of coverage. Rural areas tend to see fewer providers, but we are also seeing this trend in urban areas.

As costs of healthcare rise, we will likely see more challenges when it comes to keeping hospitals open and quality healthcare available to everyone, but especially those living in rural areas.

I remain committed to finding ways to help lower healthcare costs. Adjusting Medicaid reimbursement rates will be an important step in relieving some of the pressure. If providers can lose less money when providing treatments for Medicaid and Medicare patients, then fewer costs will need to be made up by those with private insurance. In turn, insurers won’t have to resort to plans like Medicare Advantage to find premium rates that appeal to employers. I have sponsored an interim study to explore Nebraska’s provider rates and solutions to this issue.

I look forward to continuing to hear from you regarding 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 by calling my legislative office at 402-471-2729.

A couple of weeks ago, I had lunch with Eric Dunning, Nebraska’s Director of Insurance, to discuss the state of the insurance industry in Nebraska. We discussed some of the current challenges, as well as some constituent questions that might be coming regarding the increase in property and casualty insurance rates and any “non-renewal” notices due to perceived risks of certain clients.

It is important to distinguish the various types of insurance: property and casualty, life, health, etc. Many insurers and reinsurers operate across several states. Major storms in the southern part of the United States, fires in Hawaii, and even wildfires across Nebraska have increased the number of property and casualty insurance claims nationwide. In addition to the higher-than-normal losses, replacement costs for buildings and equipment have risen dramatically due to the current labor shortages and high levels of inflation and high interest rates have all negatively impacted the major insurers. This has resulted in significant premium increases (in some cases 200% or more) and non-renewals of some insureds.

Let me be clear, I have no ties to the insurance industry from a financial standpoint but make it a point to understand how businesses work, particularly as Vice Chair of the Legislature’s Banking, Commerce, and Insurance Committee.

Although I have yet to hear directly from constituents, I have visited with several insurance agents who are working hard to keep their clients insured and trying to help them understand the reasons for the rate increases. Many see clients walking out the door to go to another agent only to find out that they are not able to get better coverage elsewhere either. Although this will not last forever, it is safe to say that we will be dealing with this situation for the foreseeable future.

One way you can reduce the effect of this environment on you is by being smart about your insurance claims. Property and casualty insurance is meant to be there when disaster strikes, not for every small incident that may arise. As an example, if you back into a garage door that you were certain was open and create $1,500 in damage to your car, you may want to not file a claim with the insurer if you have a $1,000 deductible just to receive the $500 check. Processing the claim alone will cost the insurer over $1,000. Over time, these types of claims result in higher rates for you, and can even lead to your policy being canceled altogether.

In times when resources are limited, it is not unusual for insurers to review the past three years’ claims activities when evaluating who is the kind of risk that they want to take. Historically, there has usually been an alternative for individuals and companies that become uninsurable, but this can never be guaranteed. I will continue to monitor the current environment to make sure that this issue does not have a huge negative impact on the residents of District 42.

I look forward to continuing to hear from you regarding 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 by calling my legislative office at 402-471-2729.

I spent the better part of last week in Lincoln attending various meetings, including the annual Platte Institute’s Legislative Summit. Speaker John Arch delivered the opening address. Speaker Arch faced a huge challenge in the 2023 session. When the session began, we had a new Governor, a new Clerk, a new Speaker, and 15 freshman Senators, 7 out of the 15 committee chairs were new, and there was a huge turnover in legislative staff, including 8 new committee counsels.

In the end, the most obvious challenge was the new and inventive uses of the legislative rules of procedures to block debate rather than promote real debate. It is a testament to Speaker Arch’s leadership that we were able to accomplish anything at all. I look forward to working with the Speaker and others to review some of our rules and procedures in 2024 to help ensure that we have an open debate on all bills and make the 2024 session a very productive session.

Speaker Arch did a great job of recapping the Legislature’s accomplishments in 2023 during his address. We passed a Voter ID bill, as directed by the voters. We passed legislation enabling the adoption of the Certified Community Behavioral Health model, changing the way we deliver behavioral health in the state. We made strides in criminal justice reform, focusing on helping inmates to successfully transition when their time served is complete. We committed funding for the Perkins County Canal project, established the Broadband Office, and extended grant applications under the Nebraska Broadband Bridge Act. We ended the practice of home equity theft and paved the way for bond financing of state highway projects.

On the education front, we dramatically increased funding for special education and created foundation aid to support our rural public schools that do to currently receive TEEOSA funding. The Legislature also made great strides in adopting policies to increase school security, recruit and retain teachers by removing testing and certification barriers, and, for the first time, give families true school choice.

Perhaps the most notable action taken by the Legislature this year was the passage of major tax reform packages. These reforms include fully eliminating the State taxation of Social Security while also phasing in the reduction of both individual and corporate income taxes down to 3.99% by 2027.

The income tax is not the only tax that is a burden on Nebraskans. High property taxes are pushing seniors out of their homes that they have worked hard to own, and our farmers and ranchers continue to pay property taxes that are clearly out of line. To help solve this problem, LB243 transfers funding for our Community Colleges to the State, rather than keeping their operating budgets on the property tax rolls. We also provided $309 million in additional funding to public schools and established and funded a $1 billion “Future Education Fund” to ensure the State can fulfill its commitments to this additional funding level. It is also important to note that the Legislature once again added funding to the income tax rebate that will allow every property taxpayer to claim a tax credit equal to 30% of the property taxes paid toward your public school and community college property taxes. This rebate is available even if you do not owe any state income taxes.

Finally, we passed a budget that delivers on essential government services but also holds the spending growth to under 2% and maintains $ 830 million in our State’s rainy-day fund.

Regardless of how we got there, it was a very productive first session of the 108^th legislative session. I remain positive about what we can accomplish next year during the shorter 60-day legislative session.

I look forward to continuing to hear from you regarding 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 District 42 and the State. You can reach me at mjacobson@leg.ne.gov or by calling my legislative office at 402-471-2729.