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



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*March 22, 2025*




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Jen Amundson
612-214-7778
[email protected]

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State officials launch statewide series of roundtables on impact of proposed federal health care cuts

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

At Children’s Minnesota Hospital in St. Paul on Saturday, state officials, doctors, patients and advocates kicked off a series of statewide roundtables educating Minnesotans on the impact of proposed federal cuts to vital health care programs.

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. While specific proposals have yet to be unveiled, 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.

“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.”

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. 

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. 

"In my day-to-day life Medicaid is a vital lifeline,” said Sumukha Terakanambi, a Lakeville resident with a progressive neuromuscular disease called Duchenne Muscular Dystrophy. “Medicaid covers prescription drugs to maintain my health, personal care assistance to assist with acts of daily living, transportation to get to work and out in the community, durable medical equipment to help with personal cares, home modifications to make my home more accessible, and assistive technology to support my employment."

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 plays a crucial role in ensuring that every child has access to the quality healthcare they need,” said Dr. Marc Gorelick, president and CEO of Children's Minnesota. “At Children's Minnesota, we see firsthand the profound impact of Medicaid. Nearly half of the patients we serve rely on Medicaid, which helps set up kids for a lifetime of success by providing access to essential preventative care, such as check-ups and vaccines, and effective treatment for chronic conditions. This proactive approach prevents more serious health issues that ultimately cost society more in the long run. Cutting Medicaid threatens access to these essential services for the kids and families we serve. An investment in Medicaid is an investment in our children, and ultimately an investment in a healthier future for all."

In addition, the looming expiration of enhanced premium tax credits and other changes to the individual market and MinnesotaCare will result in higher health costs for Minnesotans, causing many to lose coverage.   

"Without congressional action to extend current tax credits, over 19,000 Minnesotans will lose access to the financial help that makes their health insurance affordable, and nearly 90,000 will see their monthly premium bill increase next year,” said MNsure Chief Executive Libby Caulum. “On average, these consumers will pay over 50% more every month for the health coverage they depend on. Minnesotans recognize the importance of having health insurance, but many families will face tough choices if faced with this type of price hike."

Between draconian cuts to Medicaid and loss of funding for enhanced advanced premium tax credits, Minnesota’s historically low uninsured rate of 3.8% will likely increase significantly. This will cause many Minnesotans to forego care or be pushed into emergency rooms where uncompensated costs will be picked up by many people purchasing private coverage.

The Saturday event in St. Paul is the first in a series of roundtables state officials will be holding on the proposed federal health care cuts. More roundtables are planned in Duluth, Mankato, Rochester, St. Cloud and other locations.

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

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