Governor Parson Calls Special Session to Address Funding for MO HealthNet Program

Today, Governor Mike Parson announced a special session beginning Wednesday, June 23 at 12:00 p.m., to focus on extending the Federal Reimbursement Allowances (FRA) and related allowances, taxes, and assessments necessary for funding MO HealthNet before cost-savings measures are needed on July 1. FRA is a program that spans multiple decades and was born from a public-private partnership between Missouri hospitals and state government to support the MO HealthNet program. The FRA provides funding to various health care providers across the state, including hospitals, pharmacies, mental health facilities, nursing facilities, emergency medical service providers, and others. The Fiscal Year 2022 operating budget includes estimated revenue from the FRA program and other allowances, taxes, and assessments to fund primary components of the MO HealthNet program. Failure to extend these programs would cost the state of Missouri an estimated $591 million in FY22 and $788 million in FY23. Payments from the MO HealthNet program would also be reduced by $1.52 billion in FY22 and $2 billion in FY23 if these programs are not extended. Allowing the FRA program and other allowances to expire would require the state to take immediate cost-savings measures, including rate decreases, elimination of non-mandatory programs, changes to fee schedules, and budget restrictions and vetoes. The special session will focus on extending certain allowances, taxes, and assessments that fund the MO HealthNet program. Specifically, Governor Parson’s special session call is to:

  • Extend the expiration of the ground ambulance service reimbursement allowance
  • Extend the expiration of the nursing facility reimbursement allowance
  • Extend the expiration of the Medicaid managed care organization reimbursement allowance
  • Extend the expiration of the FRA program
  • Extend the expiration of the pharmacy tax
  • Extend the expiration of the intermediate care facility for the intellectually disabled assessment
  • Prohibit abortifacient drugs and devices
  • Prohibits funding for abortion facilities under the Uninsured Women’s Health Program
  • Allow the Senate to consider appointments that require the advice and consent of the Senate

The special session proclamation will be uploaded to Governor Parson’s website once it is available.

 

Photo Gallery