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Missouri Legislature Passes Medicaid Funding Tax At The Last Minute

Missouri State Capitol dome JEFFERSON CITY A bill to renew a tax that funds Missouri’s portion of Medicaid made its way to Gov. Mike Parson to sign into law, just hours before the state’s new fiscal year was to begin. The House on Wednesday approved the renewal of the Federal Reimbursement Allowance tax during the special session Parson called to address the issue. Not renewing it would have cost the state billions in revenue and federal dollars. House Budget Chairman Cody Smith, R-Carthage, said passing the tax was critical to the state’s finances. “If we do not renew the FRA, then our budget will be out of balance, and it would be catastrophic,” Smith said, asking for his colleagues to approve the measure.

Missouri House sends Medicaid tax to Gov Parson, avoiding budget cuts

Springfield News-Leader JEFFERSON CITY The Missouri House passed a tax critical to funding the state s Medicaid program Wednesday, sending the bill to Gov. Mike Parson s desk less than a day before the start of the fiscal year and avoiding significant budget cuts.  Lawmakers voted 140-13 to renew the Federal Reimbursement Allowance, which taxes hospitals, nursing homes and other health care facilities to earn the state federal dollars. It makes up for around $4 billion of the state s $11 billion Medicaid budget, and if allowed to expire would have forced the governor to make major cuts across state services and programs. The bill will now go to Parson s desk, where he will sign the three-year renewal. Both chambers of the legislature gaveled out Wednesday afternoon, formally ending the special session.

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