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Medicaid expansion could cost Nebraska $766 million

By Katie Knapp Schubert

Omaha, NE – A new report says Medicaid expansion under the federal health care law could cost Nebraska as much as $766 million.

Governor Dave Heineman discussed the Medicaid expansion and its costs during a news conference Wednesday. An analysis done by actuarial firm Milliman shows Nebraska can expect to spend $526 million to $766 million between 2011 and 2020 on the Medicaid requirement.

Governor Heineman says one in five Nebraskans could be eligible for Medicaid under the new health care law. He says the funds to pay for expansion of Medicaid could come from education funding or taxes.

Milliman's report says the Medicaid expansion will affect Nebraska's budget from 2011 to 2020.