Medicaid (called Medical Assistance in Minnesota) provides health coverage to 1.3 million Minnesotans, ensuring access to preventive care, maternal health, chronic disease treatment, and long-term care.
H.R. 1, signed into federal law on July 4, 2025, makes sweeping changes to Medicaid including new work reporting requirements, cost-sharing, restrictions on immigrant coverage, and cuts to hospital funding mechanisms. The law also requires the state to check whether Medicaid expansion enrollees still qualify for coverage every six months instead of once a year, doubling the paperwork for many enrollees and the state alike. Together, these changes are projected to result in a loss of coverage for an estimated 140,000 Minnesotans.
When people lose coverage, they don’t stop needing care, they turn to their local hospital. Here is what H.R. 1 will mean for Minnesota:
Minnesota hospitals already operate under severe financial strain, with Medicaid reimbursing just 79 cents on the dollar. These cuts hit rural communities hardest, where Medicaid is critical to keeping hospital doors open and essential services like emergency and maternity care available.
*MHA internal analysis as of November 2025
Improve the Medicaid eligibility and enrollment process to ensure patients can easily access coverage.
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