At Essentia Health-St. Mary’s Medical Center in Duluth 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. “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.”

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. In northeastern Minnesota alone, Medicaid and MinnesotaCare invest $1.8 billion dollars annually in care for residents, covering nearly 200,000 enrollees.

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. 

"For the women, children and newborns we care for at Essentia Health, Medicaid is often foundational to their access to health care," said Dr. Michael Kassing, an OB/GYN at Essentia. "Our patients have enough on their plates without having to worry about access to care and coverage. My team and I want to make sure they can continue to receive world-class care here at Essentia, and Medicaid has been key to doing exactly that.”

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.   

"Over seventy percent of MNsure enrollees in northern Minnesota – more than 13,000 people – will see their health care costs go up in 2026, unless Congress acts to extend current tax credits,” said MNsure Chief Executive Officer Libby Caulum in a statement. “On average, their premiums will go up by $186/month, a 56% increase in what they pay for the 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 event in Duluth is the second in a series of roundtables state officials will be holding on the proposed federal health care cuts. The first was in St. Paul. More roundtables are planned in Mankato, Rochester, St. Cloud and other locations.

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