HCS HB 740 -- HEALTH CARE PROVIDER TAX

SPONSOR:  Icet

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee on
Budget by a vote of 26 to 0.

This substitute extends the expiration date from June 30, 2009,
to September 30, 2011, for the Missouri Medicaid Program's
managed care organization reimbursement allowance in Sections
208.431 - 208.437, RSMo, and the pharmacy tax in Sections
338.500 - 338.550.

The expiration date of the federal reimbursement allowance
assessment in Sections 208.453 - 208.480 is extended from
September 30, 2009, to September 30, 2011, and the intermediate
care facility for the mentally retarded provider assessment is
extended from June 30, 2009, to September 30, 2011.

The substitute contains an emergency clause.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the health care provider tax,
known as the federal reimbursement allowance (FRA) is really just
a short-term loan.  The state levies a tax on these providers to
take advantage of federal Medicaid matching funds and then
reimburses the providers through appropriations from the federal
funds.  The current state budget maximizes the use of the FRA.
In Fiscal Year 2008, the FRA and other provider taxes provided
21.3% of funding for the MO HealthNet Program.

Testifying for the bill were Representative Icet; Missouri
Pharmacy Association; Missouri Hospital Association; Department
of Social Services; and Department of Mental Health.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:25 am