Nebraska man loses Medicaid coverage while battling kidney cancer
A 64-year-old resident says new work requirements forced him to delay treatment, prompting questions about the state's rollout of federal rules.
By Alyssa Parker ·
Eli McCreary, a 64-year-old resident of Omaha, Nebraska, was diagnosed with kidney cancer in June. Shortly after the diagnosis, he received a call from a local hospital operated by CHI Health stating that his Medicaid coverage had ended. The hospital informed him that his upcoming appointments would be canceled unless he paid for services out of pocket.
McCreary contacted a call center for assistance, where a representative told him he no longer met the criteria for the government health program. The representative cited new rules requiring beneficiaries to work to maintain their benefits. McCreary explained that he has a history of drug addiction, diabetes, and chronic obstructive pulmonary disease. He stated that his physical condition prevents him from working, noting that he cannot walk or breathe easily.
Due to the coverage lapse, McCreary canceled a CT scan and other diagnostic tests at the hospital. He also delayed a critical cancer-related appointment with a specialist who travels to Omaha from out of state. McCreary said he missed his window for treatment with that physician for an entire month.
Taylor Miller, a spokesperson for CHI Health, said the system is committed to helping patients understand their coverage and access financial assistance. Jeff Powell, a spokesperson for the Nebraska Department of Health and Human Services, confirmed that McCreary was eligible for Medicaid through the Affordable Care Act, which places him in the category subject to new federal work requirements. Powell stated that the state has no record of McCreary calling the health department directly, though McCreary believes he reached a line managed by a private contractor for food stamp accounts.
Nebraska became the first state to enforce Medicaid work requirements under the One Big Beautiful Bill Act, launching the rules on May 1. The law mandates that adult recipients work or participate in similar activities for 80 hours per month unless they qualify for an exemption. State data indicates that 86% of affected applicants met the requirement or qualified for an exclusion, while 93% of existing enrollees kept their coverage. However, advocates report confusion among participants and longer wait times for assistance.
Internal documents show that average wait times at the state call center nearly doubled between May and July, rising from 13 minutes to 26 minutes. Nebraska received more than 101,000 calls in August, a 66% increase from May. Kenny McMorris, CEO of the Charles Drew Health Center in North Omaha, noted that many patients lack the time to navigate the complex reporting requirements while working. He said roughly 42% of his center's Medicaid patients are subject to the new rules.
The state budgeted $8.2 million over two years for contractors to help implement these changes. Public Consulting Group and Covendis were hired to provide staffing and information technology support. Sarah Maresh, program director at Nebraska Appleseed, described the costs as shocking, noting that large corporations are profiting from the administration of the policy. The state also listed at least six contractors costing more than $250,000 each, including one individual earning over $1.8 million.
Attorneys and policy professionals suggest that McCreary should have been exempt from the work requirements due to his substance use treatment and serious medical conditions. The federal law allows exemptions for individuals who are too sick to work. As of next year, similar work requirements will apply to millions of adult Medicaid enrollees in more than 40 states. The Congressional Budget Office estimates the policy will leave 5.3 million more people uninsured in the United States by 2034.
