Nebraska GOP governor opposes state expansion of Medicaid LINCOLN, Neb. - Gov. Dave Heineman is warning Nebraska lawmakers that he will oppose any efforts to expand Medicaid coverage in the wake of the U.S. Supreme Court's ruling on the federal health care law. The Republican governor took aim Wednesday at a scheduled health-exchange planning session organized by a Democratic lawmaker, calling it an "organizational meeting" of advocates who want to expand Medicaid. Heineman says in a letter to lawmakers that he's concerned an unfunded Medicaid expansion will force cuts in state aid to schools or a tax increase. The high-court's ruling last month required states to create health benefit exchanges to help insure more people. But the court ruled that the federal government cannot penalize states that opt out of a Medicaid expansion outlined in the federal health care law.