Proposed cuts could cost Minnesota $1.6 billion annually, jeopardizing health coverage for 1.3 million Minnesotans

ST. PAUL, MN - Governor Tim Walz and U.S. Rep. Kelly Morrison today joined state officials, doctors, and advocates to discuss the impact of proposed federal cuts to vital health care programs. It was the sixth in a series of statewide roundtables being held to discuss the potential federal cuts.

Changes proposed in the U.S. Congress to Medicaid and health care funding could result in $880 billion in cuts to health care programing benefiting 1.3 million Minnesotans. State estimates show that Minnesota could lose as much as $1.6 billion annually in federal support for health care programs serving a wide swath of Minnesotans, including children, those who are pregnant, seniors, and people with disabilities.

“Billionaires in Washington are going after our health care, putting lives in danger by threatening major cuts to the programs that over a million Minnesotans rely on,” said Governor Walz. “Medicaid pays for life-saving medication, cancer treatment, child well-checks, and supportive care. Cuts to this funding would put hundreds of thousands of Minnesotans’ lives at risk, disproportionately impacting kids, seniors, people with disabilities, and those living in rural areas. Minnesotans deserve better and I will continue to fight every day to prevent these cuts.”

Many Minnesotans could lose their coverage and access to lifesaving health care and preventive medicine if Medicaid is cut. Without comprehensive health care coverage, people are likely to skip early and preventive care, leading to worse outcomes and more expensive treatments later on. 

“The proposed $880 billion target is not just an abstract figure. It represents a direct threat to the health and well-being of countless Minnesotans and the stability of our health care system,” said John Connolly, state Medicaid director. “This significant number underscores the potential harm facing our state, and the truly challenging choices that will have to be made if these cuts are enacted.”

Significant service cuts could be required for the people who remain on Medicaid. These reductions would severely limit coverage, forcing vulnerable populations – particularly older adults and people with disabilities – to make difficult choices about their care, including long-term care options. Older adults and people with disabilities make up approximately 15% of Medicaid enrollees and account for roughly 60% of total spending, highlighting the disproportionate impact of these cuts on those who rely on long-term care. 

Medicaid is a foundational component of Minnesota’s health care system, injecting billions of dollars into communities across the state and helping hospitals remain operational.

"Medicaid isn’t just a health insurance program - it’s the foundation for healthy families and thriving communities,” said Dr. Kim DeRoche, a primary care physician with M Health Fairview. “At our clinics, one in five visits is covered by Medicaid - and behind every visit is a story: a working adult managing a chronic condition; a newborn in need of a healthy start; a senior navigating complex care. Medicaid helps Minnesotans of all ages stay healthy, stay employed, and stay connected. When it’s threatened, the consequences are immediate - and the human cost is far too high.”

Find more information about the impact of Minnesota’s Medicaid program at mn.gov/dhs/medicaid-matters.