MN counties could see strain, 250K could lose coverage under Medicaid changes in Trump’s big bill

Exactly how cuts to population assistance programs in President Donald Trump s One Big Beautiful Bill will affect Minnesota is yet to be seen though by one estimate up to a quarter-million people in the state could lose Medicaid coverage over the next decade Counties expect financial strain from new administrative requirements could drive up property taxes About trillion in cuts to Medicaid could end in million Americans losing coverage In Minnesota anywhere from to people could lose benefits under new Medicaid eligibility requirements including a requirement for able-bodied adults to work according to an analysis by the Kaiser Family Foundation a citizens robustness plan nonprofit The reconciliation bill which Trump signed into law last week after it passed the Republican-controlled U S House and Senate requires people between the ages of and to work hours a month to receive benefits It also requires Medicaid providers to perform monthly and quarterly checks on addresses and eligibility Typically that happens annually Added paperwork could drive people to drop coverage Minnesota Medicaid Director John Connolly revealed at a Tuesday hearing of the Minnesota House Fraud Prevention and State Oversight Committee Under the bill s new requirements the state could also lose about million in federal reimbursements for hospitals and nursing homes each year according to Department of Human Services Commissioner Shireen Gandhi who also testified at the Tuesday hearing State officers say those losses could lead to the closure of rural hospitals and nursing homes that rely on federal aid to stay open Nearly million Minnesotans are at present on Medicaid at a cost of around billion each year The federal initiative provides medical coverage for low-income people children and the disabled The Kaiser Family Foundation estimates that around two-thirds of people on Medicaid between and were employed Three in were exempt for reasons like caregiving responsibilities illness or disability County costs Minnesota s Department of Management and Budget is still working to figure out the exact fiscal impact of the bill but could have estimates ready by the end of this week or early next week according to an agency spokesman Counties are concerned that new eligibility and administration requirements will put strain on local taxpayers Those include the new work requirement that by one estimate could add million in workload and other costs to local governments Minnesota is one of states where counties handle Medicaid enrollment meaning they would bear much of the responsibility and costs We re expecting property tax burdens to counties increased workload for the folks that are in the present working on eligibility we re concerned about the ability to add that workforce revealed Matt Freeman a agenda analyst with the Association of Minnesota Counties Making the system more complex with more attempts doesn t inherently prevent fraud Metro counties that administer the largest assistance programs such as Ramsey County could see a lot more of that burden Freeman explained It s not yet clear how much it could affect the local tax burden The association estimates that workloads could double for counties A great number of of the new requirements for Medicaid are not set to go into effect until early after the midterm elections so they won t without delay affect coverage But there are other provisions on general assistance programs that are already in effect Trump s big bill also makes about billion in cuts to the Supplemental Nutrition Assistance Activity or food stamps over the next decade and expands work requirements Able-bodied adults between the ages of and will have to verify whether they have a job That s up from Around Minnesotans are on SNAP and the state receives about billion a year in aid for the project While an expanded work requirement for SNAP won t take effect until new administrative rules are already in place Reimbursements from the federal regime will depend on the rate at which local governments properly provide benefits If there s an error rate above states will have to cover to Minnesota was at a error rate in though the rule would apply to and rates Under an earlier version of the big bill which featured bigger SNAP cuts Ramsey County was poised to see a million increase in administrative costs alone according to the county association The change could have forced counties to raise property taxes by to account for cuts to SNAP and a drop in the federal share of administrative cost coverage Ramsey County could have needed to raise property taxes by according to the analysis though with smaller cuts that hike would now likely be lower Special session Throughout the legislative session Democratic-Farmer-Labor legislative leaders suggested lawmakers might have to return to the Capitol again later this year to address the effects of Trump s big bill Prospective cuts to Medicaid and welfare programs like SNAP would require the state to make spending adjustments Republicans dismissed those concerns as hypothetical and noted they d have to wait and see what kind of bill would pass Now that the president has signed the bill into law it s still not clear whether that will be necessary At Tuesday s hearing Rep Kristin Robbins R-Maple Grove reiterated that point saying questions about who may or may not lose coverage remain speculative at this point A great number of of the newly enacted cuts aren t set to go into effect until after the midterm elections The Legislature could likely address countless of the issues in the legislative session which starts in February House DFL Floor Leader Jamie Long reported it s too soon to tell whether there will be a need for a special session though he acknowledged the bill ostensibly won t require a prompt return to the Capitol When lawmakers do return it ll be tough to make up for the federal cuts It does seem like we have certain time to respond but we know what s coming and it s not going to be without a lot of harm for Minnesotans he reported Related Articles Letters It s our duty to rediscover the hope and promise of America Stillwater to consider downtown sip-and-stroll social district St Paul Grants aim to backing Arcade Street businesses during road work Boating permits lane splitting free water at shows New MN laws start July Lane splitting filtering became legal for MN motorcyclists Tuesday Here s what to know