Missouri will pay an estimated $11.3 million to the federal government this year in taxes tied to the Affordable Care Act, according to the state Department of Social Services. Some say the tax bill should serve as incentive for state lawmakers to accept billions of dollars in federal funds to expand Medicaid in the state.
The $11.3 million tab for Missouri comes courtesy of a new tax on insurers, established under the Affordable Care Act, that’s due for the first time at the end of September. As part of that levy, states and the federal government will also pay the tax for some of their Medicaid plans.
Missouri’s Republican-led Legislature has repeatedly rejected the proposal by Democratic Gov. Jay Nixon to expand Medicaid eligibility under the Affordable Care Act. Legislators have cited concerns over costs and said significant changes are needed to the current Medicaid system.