On January 17th, the Regional Health Commission (RHC) submitted testimony in support of Senate Bill 748 (SB 748) which would remove the expiration date for the federal reimbursement allowance (FRA).
The federal reimbursement allowance (FRA) system also known as the “provider tax” started in the 1990s, when hospitals began voluntarily contributing funds to the state, which could then be used as the state match for Medicaid to draw down additional federal dollars in support of the program. SB 728 would remove an expiration date for the FRA, therefore eliminating any funding issues that could come up with the need for reauthorization of this crucial funding stream for our state.
To achieve our vision of zero health disparities, the RHC strongly supports the maximum funding for MOHealth Net for all Missourians to have access to affordable healthcare. The FRA has become a critical source of funding for our state Medicaid program. However, it also frees up general revenue funding that goes to important state programs such as education. If the FRA is not reauthorized the state would lose billions in provider tax and federal dollars. This would result in significant cuts to state programs in addition to Medicaid. To avert a funding crisis in our state budget, the RHC supports the removal of an expiration date for the FRA and that it be reauthorized.
To download a copy of the testimony submitted by Riisa Rawlins, Interim CEO of the RHC, click the button below!
If you have any additional questions or requests for information, please contact Kate Kasper, Manager of Policy and Advocacy at kkasper@stlrhc.org.