Sen. Smith warns rural Minnesota hospitals, Hennepin Healthcare "cannot exist" without Medicaid
Democratic Minnesota U.S. Sen. Tina Smith says she some major concerns about the Republican-backed plan that could cut $1.5 trillion in federal spending over the next decade, possibly impacting Medicaid.
Lawmakers on both sides of the aisle are concerned about potential cuts to the program that support more than 72 million low-income people and individuals with disabilities across the country. That's more than one in five Americans.
In a virtual press conference on Thursday morning, Smith said cuts wound impact both Greater Minnesota residents and those in the Twin Cities.
"It is the insurance that's so important to rural hospitals. Without Medicaid, rural hospitals in our state would basically go out of business," Smith said. "And if you care about Hennepin Healthcare, if you get your health care in Hennepin County, Hennepin Healthcare cannot exist without Medicaid."
The Minnesota Department of Human Services says 1.3 million Minnesotans are on Medicaid, and department leaders say the potential impacts are still unclear.
Minnesota receives $11.2 billion in Medicaid funding, and that is expected to increase to $14.5 billion by 2029.
The federal government covers just over half the costs associated with the program and nearly all of the associated costs for those who qualify under Medicaid expansion, according to the Kaiser Family Foundation.
But under the proposed cuts, the Energy and Commerce Committee, which oversees Medicaid, is tasked with finding $880 billion in savings.
GOP U.S. House Speaker Mike Johnson said even though Medicaid isn't specifically noted in the budget resolution, he didn't guarantee the program would be left untouched, saying cuts could be made targeting "fraud, waste and abuse." Other GOP leaders have said outright that Medicaid won't be affected.
All of Minnesota's Republican U.S. representatives voted in favor of the House budget resolution. Fourteen Minnesota state senators and representatives wrote a letter to GOP members of the Congressional Delegation urging them to push back on any cuts, citing concerns about the impact. It reads in part: "There are no other sources to make up the lost federal share beyond severely impacting our seniors and those with disabilities who we serve. This is contrary to how we Republicans respect the aged and the vulnerable."
Rep. Brad Finstad wrote on X that Tuesday's vote "was a procedural step that unlocks the budget reconciliation process, allowing us to have serious conversations about Washington's out-of-control spending."
