HCS HB 1153 -- DENTAL SERVICES FOR MEDICAID RECIPIENTS

SPONSOR:  Gunn (Backer)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Social
Services, Medicaid and the Elderly by a vote of 12 to 0.

This substitute authorizes an income tax credit for dentists who
provide qualified dental services for Medicaid recipients.  For
each tax year a credit is claimed, the director of the
Department of Social Services is to enter into an agreement with
participating dentists specifying that at least $1,000 worth of
dental services must be provided to persons eligible for
Medicaid.  A participating dentist may claim a tax credit equal
to 75% of the value of the Medicaid allowable reimbursement
actually provided, up to a maximum of $50,000 per year.  If the
credit claimed exceeds the tax liability, the difference is to
be returned as a tax refund.  Persons falsely claiming a tax
credit are guilty of a Class A misdemeanor.  The Department of
Revenue is to administer the tax credit provisions of this bill;
rules governing the dental services agreement are to be
promulgated by the Department of Social Services.  The
provisions of the substitute are effective January 1, 1999.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$54,299 in FY 1999, $12,732,251 in FY 2000, and $12,734,092 in
FY 2001.

PROPONENTS:  Supporters say that the bill provides incentives to
dentists to provide dental services to recipients of public
assistance.

Testifying for the bill were Representative Backer; Dr. Neff,
DDS; and Missouri Dental Association.

OPPONENTS:  There was no opposition voiced to the committee.

Debra Cheshier, Senior Legislative Analyst

HB 1153 -- Dental Services for Medicaid Recipients

Sponsor:  Backer

This bill authorizes an income tax credit for dentists who
provide qualified dental services for Medicaid recipients.  For
each tax year a credit is claimed, the director of the
Department of Social Services is to enter into an agreement with
participating dentists specifying that at least $10,000 worth of
dental services must be provided to persons eligible for
Medicaid.  A participating dentist may claim a tax credit equal
to 33 1/3% of the value of dental services provided, up to a
maximum of $50,000 per year.  If the credit claimed exceeds the
tax liability, the difference is to be returned as a tax
refund.  Persons falsely claiming a tax credit are guilty of a
Class A misdemeanor.  The Department of Revenue is to administer
the tax credit provisions of this bill; rules governing the
dental services agreement are to be promulgated by the
Department of Social Services.  The provisions of the bill are
effective January 1, 1999.