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FRA

Federal Reimbursement Allowance Critical to Solvency of Missouri’s Entire State Budget

Medicaid provider taxes (commonly referred to as the Federal Reimbursement Allowance, or FRA) are a critical funding stream supporting the entire state budget. While dollars raised through the FRA directly support the MO HealthNet program, the funding frees up state general
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Failure to Renew Medicaid Provider Taxes Would Be Devastating for Missourians

Failure to renew the state’s Medicaid provider taxes would not only cost Missouri the funding associated with those taxes and their corresponding federal Medicaid match, but could also put up to $5.7 billion in additional federal dollars from the American Rescue Plan at risk.
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