Require the Department of Health and Human Services to submit a demonstration project waiver for traditional healing services

LB 1016 requires Nebraska's Department of Health and Human Services to apply for a federal waiver by July 1, 2026, to allow Medicaid reimbursement for traditional healing services. This bill directly affects Medicaid beneficiaries, particularly American Indian and Alaska Native communities, by enabling access to culturally grounded health practices previously excluded from coverage. Key provisions mandate tribal consultation in defining services and provider eligibility, ensure traditional healing does not replace standard Medicaid care, and require budget neutrality. The waiver aims to improve health equity through services developed with tribal nations, as specified in the bill's requirement for federal approval under Section 1115 of the Social Security Act.