Parson says funding restrictions will be necessary if Medicaid tax isn’t reauthorized
JEFFERSON CITY, Mo. (KMIZ)
Missouri's governor said he will veto or restrict about $1.4 billion worth of state funding to pay for Medicaid if the legislature does not call a special session to reauthorize a tax on health-care providers that helps pay for the program.
Gov. Mike Parson held a news conference Monday at the Missouri Capitol to announce a noon Tuesday deadline for legislators to come to an agreement for a special session to reauthorize the Federal Reimbursement Allowance. If they don't, Parson said, he will veto or restrict more than $722 million in fiscal year 2022 state funding. The fiscal year begins July 1.
Parson said he plans to restrict more in fiscal 2023 if necessary.
Parson said the spending restrictions for the coming budget year will affect critical state funding for health care, infrastructure, workforce development and education, among other items. The plan would hold back $5.4 million in funding for the University of Missouri and another $7 million for MU's Nextgen Precision Health Institute.
Legislators failed to reauthorize the FRA during the regular session after opposition arose over whether to cut coverage for certain contraceptives and Planned Parenthood from the state's Medicaid program, MO HealthNet.
Watch a replay of the news conference in the player below.
The FRA expires Oct. 1. Not extending it means funds used to balance the fiscal 2022 budget "simply do not exist," Parson said.
Parson, a staunchly anti-abortion Republican, said he disagrees with legislators who want to cut funding for contraceptives and Planned Parenthood, saying those actions were not "pro-life," pointing to dire consequences for the state.
"I am pro-life," Parson said. "I have supported pro-life measures my whole career and always will. However, narrow political interest can not be allowed to hold hostage vital health care funding."
Parson said he will move ahead with the funding restrictions absent a deal with legislators by noon Tuesday. A special session would be required to extend the FRA by the Oct. 1 deadline because the next regular session isn't until next year.
House Minority Leader Crystal Quade, D-Springfield, pointed out in a statement that the FRA's renewal has passed each year for 30 years without controversy until now.
“The problem with trying to appease extremists is they cannot be appeased. Once you give into their demands, they always want more," Quade said in the statement.
Quade said if the FRA isn't renewed both Parson and the Republican supermajorities in the legislature will be responsible.
