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Federal officials tout new Nebraska Medicaid proposal

LINCOLN, Neb. (AP) — Federal officials are touting a new Nebraska Medicaid proposal as a way to boost the state economy while increasing access to mental health and substance abuse treatment services.

The U.S. Department of Health and Human Services issued a report on the proposal Monday, one day before Nebraska lawmakers are scheduled to debate it. The report says 21,000 uninsured people with a mental illness or substance abuse disorder could qualify for coverage if the measure passes.

The bill faces an uphill battle in the Legislature, despite a coalition of doctors, hospitals, local governments and uninsured residents who support it. Conservative groups and members of Gov. Pete Ricketts' administration say the proposal is unsustainable.

Supporters of the proposal are planning to rally outside the Capitol on Tuesday wearing all black.

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