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Nebraska Compromise is the name for a deal made by Senate Majority Leader Harry Reid to Nebraska’s Democratic Senator Ben Nelson, the last Democratic hold-out, allegedly in order to secure his vote for a Senate bill entitled the “Patient Protection and Affordable Care Act” (H.R. 3590) sometimes referred to as “Obama’s Health Care Reform” and provide the Democrats with the required 60-votes needed to overcome a Republican filibuster. The compromise provides Nebraska with 100 percent federal funding of the Medicaid expansion [link] indefinitely into the future.[1]

It was reported that prior to the compromise Nelson had threatened to filibuster with Republicans unless certain language relating to restrictions on federal funding of abortion was included in the Bill.(1)

Specific text of the compromise can be found on page 2129, lines 4 through 13 of the above mentioned bill.(2.)

It should be noted that other states were offered similar concessions. Three months prior to the Nebraska Compromise Reid secured within the health care bill 100 percent funding for Medicaid in Nevada. Eventually a later version of the bill gave all states 100 percent funding for the first three years of the Medicaid expansion, with the exception of the above provision made for Nebraska. For all other states the costs would be about 15 cents on every $1 they receive from the federal government.

Criticism over the Nebraska Compromise: -Texas Attorney General Greg Abbot is quoted as saying: "The Nebraska Compromise, which permanently exempts Nebraska from paying Medicaid costs that Texas and all other 49 states must pay, may violate the United States Constitution — as well as other provisions of federal law," (3)

-In a letter to South Carolina Attorney General Henry McMaster, Sens. Lindsey Graham and Jim Demint wrote, “We have serious concerns about the constitutionality of this Nebraska compromise as it results in special treatment for only one state in the nation at the expense of the other 49. Nebraska does not have to come up with a single dollar." (3)


References

  1. ^ [http://www.miamiherald.com/news/politics/AP/story/1395789.html GOP may sue over health care bill's 'Nebraska compromise'