HCS HB 296 -- DENTAL SERVICES FOR MEDICAID RECIPIENTS

SPONSOR:  Ladd Stokan (Backer)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Public
Health by a vote of 12 to 0.

This substitute authorizes an income tax credit for dentists who
provide qualified dental services for Medicaid recipients.  For
each tax year a credit is claimed, the director of the
Department of Social Services is to enter into an agreement with
participating dentists specifying that at least $1,000 worth of
dental services will be provided to persons eligible for
Medicaid.  A participating dentist may claim a tax credit equal
to 50% of the value of the Medicaid allowable reimbursement, or
the difference between 80% of the usual and customary
reimbursement as determined by the most recent American Dental
Association fee survey of the west north central states and the
Medicaid allowable reimbursement for such service.  Dentists can
claim the lesser of the tax credits and no tax credit can be
claimed in any year for qualified dental services totaling
$50,000 or more.

If the credit claimed exceeds the tax liability, the difference
is to be returned as a tax refund.  Persons falsely claiming a
tax credit are guilty of a class A misdemeanor.  The Department
of Revenue is to administer and to promulgate rules related to
the tax credit provisions of this bill; rules governing the
dental services agreement are to be promulgated by the
Department of Social Services.

The provisions of the bill are effective January 1, 2000.

FISCAL NOTE:  Estimated Net Decrease to General Revenue Fund of
$53,305 in FY 2000, $9,529,772 in FY 2001, and $9,531,314 in FY
2002.

PROPONENTS:  Supporters say that the changes proposed in this
bill could facilitate an increase in the number of dentists
providing dental services for Medicaid recipients.

Testifying for the bill were Representative Backer; and Missouri
Dental Association.

OPPONENTS:  There was no opposition voiced to the committee.

Joseph Deering, Legislative Analyst

HB 296 -- Dental Services for Medicaid Recipients

Co-Sponsors:  Backer, Williams (121), Kelley (47), Chrismer

This bill authorizes an income tax credit for dentists who
provide qualified dental services for Medicaid recipients.  For
each tax year a credit is claimed, the director of the
Department of Social Services is to enter into an agreement with
participating dentists specifying that at least $1,000 worth of
dental services will be provided to persons eligible for
Medicaid.  A participating dentist may claim a tax credit equal
to 75% of the value of the Medicaid allowable reimbursement, up
to a maximum of $50,000 per year.  If the credit claimed exceeds
the tax liability, the difference is to be returned as a tax
refund.  Persons falsely claiming a tax credit are guilty of a
class A misdemeanor.  The Department of Revenue is to administer
and to promulgate rules related to the tax credit provisions of
this bill; rules governing the dental services agreement are to
be promulgated by the Department of Social Services.  The
provisions of the bill are effective January 1, 2000.