Personal Injury Law

Missouri's New Law Takes Tax Refunds Away From Working Missourians

By Ryan Bradley, Esq.

On the heels of Missouri's Governor Matt Blunt slashing the state's Medicaid rolls for approximately 125,000 Missourians, the Missouri republican legislature and Mr. Blunt have sunk a dagger even deeper into the heart of hard working Missourians. If you owe money to a hospital or health care provider and were counting on receiving a tax refund this year, don't count on it.

Missouri House Bill 818 was enacted June 1, 2007 and became law on January 1, 2008. Suprisingly, the bill passed the House with a vote of 106-41, getting bipartisan support. It is likely this part of the bill slipped through the cracks. This new Missouri law allows health care providers to unilaterally seize an uninsured patient's tax refund to collect outstanding medical bills without advance notice to the taxpayer.

This completely ridiculous law effectively makes the state of Missouri a collection agency for hospitals and health care providers. Oh, by the way, if this happens to you, expect to pay more for the same service someone with health care insurance pays. It is common practice that all health care providers charge a reduced or discounted rate to health insurance companies for services to their insureds. However, if you are uninsured, the health care provider charges you the full non-discounted rate. That?s right, the health insurance companies pay less for the same treatment than someone with no insurance and no means to pay for health insurance pays. Isn't this ironic? Talk about gouging the middle and lower class citizens of Missouri!

This new law is codified at RSMo 143.782. However, definitions outlined in Missouri statutes 143.782 to 143.788 give meaning to this new law, or more appropriately, "scheme." Here are the definitions that give context to the statute, which appears in full below:

(1) "Court", the supreme court, court of appeals, or any circuit
court of the state;

(2) "Debt", any sum due and legally owed to any state agency which
has accrued through contract, subrogation, tort, or operation of law
regardless of whether there is an outstanding judgment for that sum,
court costs as defined in section 488.010, RSMo, fines and fees owed, or
any support obligation which is being enforced by the division of family
services on behalf of a person who is receiving support enforcement
services pursuant to section 454.425, RSMo , or any claim for unpaid
health care services which is being enforced by the department of health
and senior services on behalf of a hospital or healthcare provider under
section 143.790;

Full post as published by Missouri Accident Lawyer Blog on January 08, 2008 (boomark / email).