LB 641 Legislature · 109th Legislature (2025-2026)

Change provisions relating to medicaid estate recovery

Nebraska's LB 641 amends Medicaid estate recovery rules to protect certain family members' homes from being seized to repay medical assistance costs after a recipient's death. The bill specifically exempts homes from recovery if a sibling lived there continuously for one year before the recipient's institutionalization or if an adult child provided care while living in the home for two years prior to institutionalization. To qualify for these exemptions, a physician's written attestation must verify the care provided that delayed institutionalization. The changes clarify which family members retain home ownership protections and require specific documentation to avoid estate recovery claims.
Bill status signed all 5 stages cleared
Introduction
Jan 2025
Committee Review
Mar 2025
Legislature Passage
May 2025
Legislature Passage
May 2025
Signed into Law
May 2025
Introduced Jan 22, 2025 Signed May 21, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Final Reading · 5 edits
MODERATE
This bill modifies how medical assistance debt is recovered from estates of recipients who were 55 or older or institutionalized. The changes clarify exemptions for family members who provided care, expand the definition of estate assets subject to recovery, and streamline documentation requirements for lien foreclosures.
Scope change
The bill's scope remains focused on medical assistance debt recovery, but the applicability of exemptions and estate definitions has been expanded and clarified.
ELIGIBILITY

Changed the requirement for family members to qualify for lien foreclosure exemptions from one year to two years of continuous residence in the recipient's home before institutionalization.

DEFINITION

Added new categories of assets that count as part of the recipient's estate for debt recovery, including assets transferred through revocable trusts, joint tenancy, transfer on death deeds, and certain insurance or retirement accounts.

REQUIREMENT

Replaced the requirement for a physician's attestation about care provided by relatives with a simpler written statement that care delayed institutionalization.

ENFORCEMENT

Clarified that debt recovery must occur before estate assets are distributed to beneficiaries not specified in the bill, and added requirements for cooperation from specified family members.

TECHNICAL

Removed redundant language and formatting inconsistencies from the original draft text.

Floor votes · Legislature May 1, 2025

How they voted

390
Passed · 10 other
Total votes 49
May 1, 2025
N Nonpartisan49
39 Yea 10
79% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
18
Key actions
6
Committee
2
May 21, 2025
Signed into law
Approved by Governor on May 20, 2025
executive
May 14, 2025
Legislature · Passed
President/Speaker signed
legislature
May 14, 2025
Legislature · Passed
Passed on Final Reading 49-0-0
legislature
May 1, 2025
Legislature · Passed
Judiciary AM538 adopted
legislature
May 1, 2025
Legislature · Passed
Bostar AM672 adopted
legislature
Mar 13, 2025
Legislature · Passed
Placed on General File with AM538
legislature
Jan 24, 2025
Committee
Referred to Judiciary Committee
legislature
Jan 22, 2025
Introduced
Date of introduction
legislature
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Eliot Bostar
Eliot Bostar
NNonpartisan
NE
29