State Sen. Jason Crowell, R-Cape Girardeau, said the bill would allow doctors, nurses and dentists to deduct Medicaid payments from their taxable income.

The Cape Girardeau Republican said such a move would make up some of the gap between how much the taxpayer-funded program reimburses for health care and how much that care actually costs.

The generally low payments have led many health care providers to avoid treating Medicaid patients, creating a bottleneck for those patients to find care.

In the fiscal year that ended June 30, Medicaid payments to health care providers was $206.7 million.

Crowell estimates his bill would provide tax savings to those providers of about $12.4 million. © Copyright 2009, St. Louis Public Radio