Medicaid
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Federal Reimbursement Allowance (FRA)
Missouri’s Federal Reimbursement Allowance program directly benefits Missouri’s economic and health care infrastructure. This highly successful public/private partnership serves as a model of vision, creativity and cooperation.
In 1991, Missouri’s health care and governmental leaders were facing significant budgetary challenges. In response, the FRA program began as a voluntary program; it was expanded and enacted into law as a provider tax in 1992. Hospitals provide funds to the state, and Missouri’s Medicaid program (now called MO HealthNet) uses these funds to earn federal matching dollars.
The FRA program has evolved to maximize federal matching dollars and reduce the burden of MO HealthNet on state general revenue. The FRA is a major source of revenue to the state, surpassing all but the two largest sources of general revenue. Today, it is a major funding stream for MO HealthNet. This releases traditional general revenue to be used for other state priorities.
Revised Medicaid Reimbursement Methodology Changes, Effective July 1, 2022
During this webinar, MHA staff discuss the MO HealthNet Division’s revised Medicaid reimbursement changes, which it plans to implement on Friday, July 1. Staff review MHD’s reimbursement methodology changes to the inpatient fee-for-service program, graduate medical education and the directed payment methodology that will apply to Medicaid managed care. This may have significant financial implications for hospitals.
Contact An Expert
Brian Kinkade
Vice President of Children's Health and Medicaid Advocacy