A Senate health bill provision that would shield Nebraska from having to pay to expand Medicaid programs in other states is a "placeholder" to be used to ensure that all states are treated fairly, according to Sen. Ben Nelson.

Nelson, D-Neb. – one of the last Democrats to agree to vote for S. 3950, the Senate health bill – came under fire in connection with allegations that he voted for the bill at least partly because Senate leaders added a provision exempting Nebraska, and Nebraska only, from provisions that might require some states to pay to help other states expand their Medicaid health insurance programs for the poor.

Nelson, a former Nebraska governor, says he asked for the change because he is a former governor who has long fought against unfunded federal mandates.

"The current health care bill has an unfunded mandate for expanding Medicaid," Nelson says in a statement. "While helping more Americans obtain health coverage is important, this mandate could burden state budgets in uncertain economic times ahead."

Ultimately, whatever anti-unfunded-mandate provisions end up applying to Nebraska will apply to all states, Nebraska says.

The finall bill could provide full federal funding of the Medicaid costs for all states, or allow every state the ability to opt out of expansion payment arrangements that take effect in 2017, Nelson says.

"My view is: Either fund it or un-mandate it," Nelson says.

H.R. 3950 already provides full federal funding for expanding Medicaid up until 2017. Then, states would be required to pick up a share of the costs.

The Nebraska-only "placeholder" provision "now enables the House and Senate conference to address the unfunded mandate issue and work out fair and equal treatment for every state on paying the costs of the Medicaid expansion," Nelson says.

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