St. Louis Public Radio News
12:26 pm
Tue December 10, 2002

MO Won't Have to Repay Billions

Jefferson City, MO – Missouri does not have to pay more than $2 billion back to the federal government.

The state reached an agreement yesterday with the federal agency that was considering a lawsuit to recover Medicaid money paid out over the last decade.

The case was the result of a tax Missouri charged hospitals for the last decade, based partly on revenue from Medicaid programs. The state then spent that tax money again, which triggered even more matching federal Medicaid money.

The agreement will not affect the amount of money Missouri gets each year through the Medicaid program, which totaled around $4 billion last year.