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Emily Manley and Joey Schneider
2 hours ago
JEFFERSON CITY, Mo. – In addition to the budget, Missouri lawmakers are tasked with updating billions of dollars in critical taxes this year that fund the state’s Medicaid program, which serves more than 1 million people. There is.
The Federal Reimbursement Allowance (FRA) program, a tax collected from hospitals and other health care providers to support Medicaid, generates more than $4 billion in revenue. The last time this important tax update came before the General Assembly, lawmakers missed the May deadline and returned to a special session.
Governor Mike Parson said, “There is no point in wasting taxpayers’ money any more than necessary.” “I just say, work on it, get it done and move on.”
This is an important source of funding for Missouri’s Medicaid program. If not updated, the state budget could be in jeopardy.
“FRA is an interesting conversation because no one outside the building knows how big an impact FRA will have on our budget,” said Senate President Pro Tem Caleb Roden (R-Columbia). said. “I think it’s going to feel similar to what it was two years ago. We’ll get through it.”
The tax, worth nearly $4.5 billion, would be collected from health care providers and would allow states to collect twice as much in taxes as they receive from the federal government.
“I don’t even want to think about what would happen to Missouri’s budget if we don’t pass this bill. We know that if we don’t pass this bill, the federal government won’t renew our budget,” said House Majority Leader John Patterson, R-S.C. Lee’s summit meeting) said.
The last time this tax was renewed in 2021, the governor not only had to reconvene the General Assembly but also threatened to prevent lawmakers from cutting the budget.
“For a lot of people here who are trying to do the right thing, I don’t want the bad guys to ruin it because I think there are a lot of people here who are doing good things. But if they don’t get FRA to issue a statement, Person said, they’ll end up in the same place they were two or three years ago. “We’re going to call them into a special session because we have to do that.”
This is an election year, and the continued infighting among Republicans could make passing the bill dangerous.
“If you’re a shameless person who doesn’t care about people, who doesn’t care about hospitals, who doesn’t care about hospitals being shut down in rural Missouri, then you can use that.” [the FRA] It’s a leverage point,” said Senate Minority Leader John Rizzo (D-Independent). “Missouri’s health care system will be in dire straits if we fail to pass FRA.”
House and Senate leaders said lawmakers plan to begin developing legislation to update the FRA in the coming weeks. Some hope the bill will pass more quickly this year than in previous years.
“I’m looking at depoliticizing FRA,” said House Speaker Dean Procheer (R-Des Perez). “I think we have to put Missouri’s interests ahead of any particular drama. The FRA bill is essential in many ways to keep Missouri functioning and to ensure that our citizens are protected.”
Multiple bills have been introduced to update the FRA. His two versions for the Senate remove the sunset, eliminating the need for lawmakers to keep updating their taxes.
“When we talk about FRA, it’s not just about being able to fix the Medicaid program. It’s about making sure that we can fund everything that we need,” said House Minority Leader Sgt. said Rep. Crystal Quaid (D-Springfield).
Back in 2021, a major issue in passing this bill was finding a compromise on whether to allow Medicaid coverage of contraceptives. In the final version of the bill, the General Assembly passed what was called a “clean FRA” without language regarding contraceptives.
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