Proposed cuts could cost Minnesota $1.6 billion a year and jeopardize health coverage for 1.3 million Minnesotans

ST. PAUL, MN - Governor Tim Walz and state officials wrapped a series of statewide roundtables highlighting proposed federal health care cuts. From late March through late April, the state convened seven roundtable discussions connecting with people across Minnesota to discuss significant damage to Medicaid and health care funding if Congress moves forward with proposed cuts.

Congress is currently considering up to $880 billion in cuts nationwide to health care programing that benefits 1.3 million state residents. State estimates show that Minnesota could lose as much as $1.6 billion annually in federal support for health care programs that serve a wide swath of Minnesotans, including children, pregnant people, seniors, and people with disabilities. Key congressional committees will be working on specific proposals over the next two weeks that will determine the concrete impacts to Minnesotans and all Americans.

“We need to make sure Congress does not ignore the impact of these cuts on real people,” said Governor Tim Walz. “This is not a partisan issue. This is about keeping a promise to our kids, our seniors, our workforce, and our citizens – that we will care for you when you need us most.”

Roundtables were held in St. Paul, Duluth, St. Cloud, Rochester, Mankato, Bloomington, and Moorhead. They featured local enrollees, providers and leaders from Minnesota Management and Budget, the Department of Human Services, the Department of Commerce, and MNsure.

“There’s no way to sugarcoat the consequences of these potential cuts – they are dire,” said John Connolly, state Medicaid director. “Many Minnesotans would lose their health coverage entirely, jeopardizing their access to vital medical care. Lack of comprehensive coverage leads to skipped preventive care, resulting in worse health outcomes and higher costs. Losing health insurance would force more of our friends, family and neighbors into damaging medical debt and impossible choices between health care and basic necessities.”

At the roundtables, Medicaid enrollees and health care providers shared their stories and talked about what service cuts and limited coverage would mean for them. Many of their stories can be found on the state’s new Faces of Medicaid webpage.

In Mankato, a former Medicaid enrollee talked about the importance of Medicaid – known as Medical Assistance in Minnesota – to her adult children.

“Without the help that they received from Medical Assistance, I would have been forced to quit my job. I would need to be at home to care for [my children],” said Christine M. “Medical Assistance not only saved their lives, but it has moved them closer to the possibility of employment. It's also allowed me to continue working and providing insurance that reduces that burden on Medical Assistance.”

In Duluth, a physician shared his observations about the impact of Medicaid on children and pregnant people.

“We know that pregnant women that receive routine prenatal care have better outcomes. Kids that receive regular health care have better outcomes,” said Dr. Michael Kassing. “Roughly 20% of all the women who deliver here receive a Medicaid benefit. Fifty percent — half — of all kids in Northern Minnesota benefit from this program. Caring for pregnant women and for kids really is not a controversial topic.”

In Rochester, a parent of children who receive services spoke about the significance of Medicaid to everyone.

“If you're thinking the cuts into this program wouldn't affect you, it affects everybody,” said Ginny S. “Like from a child's standpoint, you've got overworked teachers trying to control classrooms with no help. You've got the elderly with nowhere to go because the nursing homes closed. Now you've got more burden on families – how are they going to care for their loved ones.”

In Bloomington, a doctoral student who fell ill while uninsured talked about the stability of getting Medicaid.

“I found myself very sick, very poor, and no insurance. My body was being destroyed,” said Linda F. Then a friend helped her apply for Medicaid. She continued: “I can focus on my wellness. I don’t worry about how I'm going to pay for care or what treatment I have to skip because I have to eat instead or because I need to pay for something else. I can just focus on being well and contributing to society in other ways.”

The statewide roundtables also covered another threat to Minnesotans’ health care coverage. The looming expiration of enhanced premium tax credits and other changes to the individual market and MinnesotaCare will result in higher health costs for state residents, causing many to lose coverage.

Visit Minnesota’s Medicaid Matters webpage for more information about the impact of Minnesota’s Medicaid program and numbers specific to your region and county.