Minnesota and Medicaid: What the data says
The federal government funded 69% of Medicaid costs as of 2023. In Minnesota, it covered 63% of the $19.2 billion spent.
On February 25, the Trump Administration announced that the Centers for Medicare and Medicaid Services (CMS) would be freezing $259.5 million earmarked for Medicaid in Minnesota while it investigates allegations of fraud in the state.
This is the latest in a series of federal funding suspensions for Minnesota, including funds from the Department of Health and Human Services, the Small Business Administration, and the Department of Agriculture. Courts have temporarily blocked the previous attempts to freeze funding.
Let's break down the data on Medicaid in Minnesota and what this news might mean for the program.
How much does the federal government contribute to Medicaid in Minnesota?
Medicaid is a program that provides health insurance for people with low incomes. It is jointly funded by the states and the federal government. In fiscal year 2023, the federal government covered 68.9% of the overall program costs, while states covered the remaining 31.1%. The Minnesota state budget covered 36.6% of Medicaid costs, the fifth highest share of any state.
New Mexico covered the lowest share of Medicaid costs among state governments, while Wyoming covered the highest.
State government share of Medicaid costs (FY 2023)
How much is spent on Medicaid in Minnesota?
Combining state and federal funding, Medicaid cost $19.2 billion in fiscal year 2023, making up 31.4% of the state’s annual budget. The suspension announced by CMS would have amounted to 1.4% of that year’s Medicaid budget for the state.
In 2023, the budget was split between:
- payments to private health plans that states contract with ($9.5 billion)
- long-term services and supports like nursing home care and home health ($6.8 billion)
- covered costs for low-income seniors and people with disabilities ($300 million), and
- other benefits ($1.9 billion).
The Affordable Care Act gave states the option to extend eligibility to a larger subset of adults than previously possible. Minnesota expanded Medicaid in January 2014.
Medicaid costs have risen 42% in Minnesota since 2014, in line with a 41% nationwide increase in costs.
In FY 2023, the federal and Minnesota government spent a combined $19.1 billion in the state on Medicaid.
Medicaid spending by level of government
On a per-enrollee basis, Medicaid’s $13,100 in spending was 30.4% higher than the national average.
In FY 2023, Minnesota spent $13,085 per Medicaid enrollee on benefits.
Total inflation-adjusted Medicaid benefit spending per enrollee, by fiscal year
How many people are on Medicaid in Minnesota?
Minnesota has a lower-than-average Medicaid enrollment rate. As of fiscal year 2024, 1.26 million Minnesotans were enrolled in Medicaid, 44.2% of whom were children. That’s a share of 21.7% of people in the state on Medicaid, under the national average of 26.2%. Minnesota ranks 33rd among all states in Medicaid enrollment.
In 2024, 21.7% of Minnesota residents were covered by Medicaid.
Average monthly Medicaid enrollment as a share of the population
There are five categories of Minnesota enrollees:
- Children
- Pregnant women and parents or caretakers
- Adults without dependent children
- People with disabilities (including both adults and children)
- Seniors (age 65 and over)
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