Minnesota lawmakers, providers brace for impact of feds denying $112M in Medicaid funding

The announcement that the federal government won’t be reimbursing Minnesota for $112 million in federal Medicaid services already provided didn’t come as a major surprise to legislative leaders.

However, it could lead to major budget issues starting in January.

“There’s a lot of uncertainty in the economy and a lot of uncertainty about what’s going to happen with the federal government,” DFL House Speaker-designate Zack Stephenson said last week. “Will President Trump continue to seek retaliation against Minnesota in the way of vicious budget cuts targeting Minnesota?”

It turns out the budget cuts have begun. In addition to the $112 million cut already, another $350 million remains in deferral for services already provided. It’s possible the federal government could decline to reimburse those funds, too.

“This latest punishment [from the Trump a...