Wednesday, December 6, 2006
Contact: Jessica Robinson, 573-751-0290
Blunt Fights for Federal Funding for Medicaid
JEFFERSON CITY–Gov. Matt Blunt is working with Missouri’s congressional delegation to protect federal funding for the state’s Medicaid program.
“We have built our state’s budget based around the framework the federal government provided to the states. It would be crippling to all state funded programs if national leaders tear apart the budgetary framework they created,” Blunt said. “I have called on our Congressional leaders to spotlight the harm proposed changes would bring to Missouri and will continue to fight to protect Missourians’ best interest.”
The federal government has proposed changes that could limit the states’ ability to levy taxes on health care providers. Current federal regulations allow states to levy a provider tax of up to 6 percent. Proposals to limit states to anything less would cost Missouri millions. The current proposal to limit states to 3 percent would lead to a more than $500 million hit to the state’s general revenue budget.
Blunt has said he cannot support anything that would take federal funds away from the state’s Medicaid program.
The governor acknowledges and respects the importance of fiscal responsibility at the state and national levels and believes this can be achieved by building on the successes of the Deficit Reduction Act of 2005 and developing additional Medicaid transformation principles that can decrease a state’s reliance on funding sources, such as the provider tax.
“The federal government told Missouri this was an acceptable financing mechanism. It will do real harm to Missourians if this is unraveled,” Blunt said.
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