$3 Billion in Medicaid Funding Held Up in Legislature

 If Missouri lawmakers fail to act in the next two days on a key piece of legislation, Missouri could lose nearly $3 billion for its Medicaid program.  

Lawmakers face a September deadline to pass an extension of the federal reimbursement allowance, or FRA. The FRA is a tax paid by all hospitals and clinics who provide for Medicaid patients. 

When Missouri’s hospitals pay FRA taxes, it generates roughly a $1 billion dollars each year for Missouri’s Medicaid program. The federal government then matches that with another $2 billion. 

CoxHealth VP of Public Affairs Jim Anderson said the $3 billion represents roughly a third of Missouri’s annual Medicaid spending. 

"It expires in September and if there's not the FRA, somehow we have to find a billion dollars, which is not there to be found to match the $2 billion in federal funds that will again provide the $3 billion in Medicaid funding for Missouri," Anderson said. 

Currently, Senate democrats are holding up a vote on the FRA extension and many other bills because they are upset Senate Republicans pushed right to work legislation through the chamber.