At Gillette Children’s Mankato Clinic on Friday, state officials, doctors, patients and advocates continued 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 nationwide to health care programing that benefit 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. “These cuts would also deeply impact our healthcare providers, with rural hospitals and long-term care facilities, already facing financial strain, bearing the brunt. Medicaid dollars are a lifeline for these providers, and its erosion would destabilize our entire healthcare infrastructure.”

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. Blue Earth, Le Seuer and Nicollet Counties, Medicaid and MinnesotaCare invest $398 million dollars annually in care for residents. In the same counties, 28,000 residents were enrolled in Medicaid in 2023.

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 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, eight out of ten MNsure enrollees in southern Minnesota will see their health care costs go up in 2026. If the current tax credits expire, these consumers will see the cost of their monthly premiums jump by 74%, on average,” said MNsure Chief Executive Officer Libby Caulum. “A dramatic spike in costs could put health insurance suddenly out of reach for many families, with wide-reaching consequences for our health care system statewide.”

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 event in Mankato is the fifth in a series of roundtables state officials will be holding on the proposed federal health care cuts. The first four events were in St. Paul, Duluth, St. Cloud and Rochester.

Find more information about the impact of Minnesota’s Medicaid program and numbers specific to your area at mn.gov/dhs/medicaid-matters.