Medicaid Cuts to Strip 140K Minnesotans of Coverage, Cost $1.4B
Let’s get straight to the heart of today’s topic. According to the Minnesota Department of Human Services, a federal tax and spending bill signed into law on July 4, 2025, by President Donald Trump will slash $1.4 billion in Medicaid funding to Minnesota over the next four years. This could lead to 140,000 Minnesotans—12% of those currently enrolled—losing their health coverage. Medicaid, or Medical Assistance in Minnesota, supports low-income folks, including children, pregnant women, people with disabilities, and many older adults who need long-term care.
The cuts come from new rules starting in 2027, like requiring certain adults under 65 without kids or disabilities to prove they’re working or volunteering 80 hours a month. Another rule forces everyone to renew their eligibility every six months instead of yearly, which could trip up even eligible people with paperwork. These changes will cost counties and tribes at least $160 million to manage. Hospitals will also face more unpaid bills due to reduced Emergency Medical Assistance and shorter retroactive coverage periods—down from 90 days to just one or two months. A one-year ban on Medicaid funding for providers offering abortions, like Planned Parenthood, will cost $154 million in 2026, though a judge has paused it. These cuts hit hardest for older adults and rural hospitals, and the state’s still figuring out the budget impact. Let’s dig deeper into what this means for you.