The Missouri Chamber of Commerce and Industry, the Missouri Hospital Association (MHA) and three other groups are urging the Missouri Senate to give final approval to legislation extending the federal reimbursement allowance (FRA), which is a key funding mechanism for Missouri Medicaid.
The Senate has given initial approval to the extension, after a 40-hour filibuster. Missouri Chamber of Commerce and Industry chief operating officer Brendan Cossette says extending the FRA is critical:
“What people don’t necessarily realize is the Medicaid program is a large part of its funding comes through the FRA (federal reimbursement allowance), which is a tax that hospitals impose upon themselves to draw down more federal funds for reimbursements for their services,” Cossette says.
Mr. Cossette says failing to renew the FRA would cause rural Missouri hospitals and nursing homes to close. He tells 939 the Eagle that $3-billion for Missouri’s state budget comes from the FRA, adding that many rural hospitals typically operate on thin margins.
“If we don’t reauthorize the FRA and bring those tax dollars back into those hospitals, the already growing health care gap in rural areas will just be exasperated. And this is something that we really have to be worried about,” says Cossette.
Mid-Missouri has seen rural hospital closings in Mexico, Fulton, Boonville and Sweet Springs in recent years. The groups also say that pharmacy services will be impacted if the FRA isn’t extended. They say it would lead to a significant reduction in access to affordable essential medications.
The Missouri Senate has given initial approval to the extension, after a 40-hour filibuster. The filibuster involved unrelated issues. Passage requires one additional vote.