senior mom and dad embracing their adult daughter and laughing



Medicaid provides health coverage to millions of Americans, including eligible low-income adults, children, pregnant women, elderly adults and people with disabilities.


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.

webinar & handouts

Managed Care

For information on the MO HealthNet Managed Care Program, visit the Missouri Department of Social Services’ Managed Care Program web page.

Contact An Expert

Kim Duggan

Kim Duggan

Vice President of Medicaid and FRA

Send Email

573-893-3700 | ext. 1345

Brian Kinkade

Brian Kinkade

Vice President of Children's Health and Medicaid Advocacy

Send Email

573-893-3700 | ext. 1338

Medicaid Reverification

With the conclusion of the federally declared COVID-19 PHE, the moratorium on disenrolling Medicaid beneficiaries will end, and Congress has directed states to begin the Medicaid eligibility reverification process in April. MHA produced guidance to help hospitals with the reverification process.


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