Minnesota improperly used Medicaid dollars in the past decade to pay for seven tribal residential substance use disorder treatment programs and must now refund the federal government for the $113 million mistake.
More than 1 in 5 Minnesotans rely on the state’s Medicaid program that provides health care coverage for low-income residents, pays for nursing facilities for older adults and allows people with disabilities and seniors to continue living in the community.
House GOP efforts to slash the popular social safety net would give Democrats fodder for the midterm elections.
About one in five Minnesotans are on Medicaid. That shakes out to about one in six adults and three in 10 children. Dr. Marc Gorelick, CEO of Children’s Minnesota, told MPR News on Wednesday about half of his hospital system’s patients are covered by Minnesota Medical Assistance — the state’s Medicaid program for people with low income.
Some Republicans in the Legislature sounded the alarm about potential federal cuts to Medicaid, which could be at risk after the U.S. House passed a budget framework that includes slashing federal spending.
Kelly Kenley’s community clinic in rural Minnesota has already survived one crisis this year: her Open Door Health Center didn’t get federal funds for 10 days after Russell Vought—the Project 2025 architect turned head of the Office of Management and Budget— orchestrated a funding freeze in January that plunged Medicaid and other funds into chaos.
Democratic U.S. Sen. Tina Smith says she some major concerns about the Republican-backed plan that could cut $1.5 trillion in federal spending over the next decade, possibly impacting Medicaid.
As a Republican proposal moves forward for sweeping cuts to Medicaid, doctors in Minnesota say it would harm “the backbone of our health care system.”
Officials say the state is looking at a potential reduction of $1.2-$1.6 billion in Medicaid funding per year and that just over a third of the state’s current budget comprises federal funds.
The federal budget proposal seeks $2 trillion in spending cuts to help finance $4.5 trillion in tax cuts sought by President Donald Trump.