Medicaid Costs Add Pressure to Minnesota Budget

Rising Medicaid expenses and uncertain federal funding are putting additional pressure on Minnesota’s state budget.

Medical Assistance—Minnesota’s Medicaid program—provides health coverage to more than 1-point-2 million people. It supports hospitals, nursing homes, mental-health centers, community clinics and home-care providers across the state.

Minnesota health officials say federal funding currently being withheld or deferred could total roughly 3-point-1 billion dollars over a full year if those actions continue.

The Department of Human Services warns that a major loss of federal support could force difficult decisions involving state spending, covered services or provider payments.

Healthcare providers will continue receiving required Medicaid reimbursements while the federal funding dispute remains unresolved. Minnesota Department of Human Services | Minnesota Management and Budget