MN Medicaid cuts: Advocates address how withholding federal funds would impact state

Advocates address impact of federal Medicaid cuts to Minnesota

Representatives from various Minnesota organizations spoke about the impact that federal Medicaid cuts would have on them and the beneficiaries they serve. 

ST. PAUL, Minn. (FOX 9) - Following the Trump administration announcing it will "temporarily halt" Medicaid funding in Minnesota in response to widespread fraud in the state, advocates from several fields shared how it would impact their work and the people they serve. 

READ MORE: Fraud in Minnesota: JD Vance announces 'pause' in some Medicaid funding

Advocates address impact of Medicaid cuts to Minnesota 

Medicaid allows girl to say 'I love you,' mother says

A mother of a girl with cerebral palsy spoke about how Medicaid has made life for her daughter possible. She then addressed the "anxiety about her future" following the announced federal Medicaid cuts. 

What they're saying:

Sarah Lindbo works for Gillete Children's but spoke to the media as a mother of a teenage girl who was born with cerebral palsy.

Her daughter, Greta, requires specialized care and equipment to live her life, and Medicaid makes that possible by providing funding that goes beyond the scope of private health insurance.

"Private insurance does not deem communication as medically necessary," Lindbo said. "We did not plan this life for our daughter, we did not plan to rely on Medicaid but like all parents, we just love our child and our children, and we depend on systems that allow them to live, and learn and participate in community and their lives. Medicaid is that system for us and for many others." 

Autism center asks to keep fraud focus on 'people, not politics'

A representative for the Minnesota Autism Center is asking that the fraud probe focuses on the people impacted instead of the politics surrounding fraud in Minnesota. 

Jennifer Diederich, the chief compliance officer from MAC Midwest, also known as the Minnesota Autism Center, spoke about the administrative toll that the anti-fraud regulations are taking on the nonprofit that already operates on razor-thin margins. 

"We've worked diligently to secure a line of credit and cut all non-essential expenses," Diederich said. "So, working in that financial reality, we were told we need to revalidate all locations, which for us is 18 centers. This is hundreds of pages of documentation, and it's a $700 per center revalidation fee. Not to mention, we need to apply for provisional licensing also before May 31st, which is about $1,200 per location. Which means that between February and May 31st deadline, we'll have to pay almost $35,000 in fees alone in a time where we are already under such financial strain due to prepayment." 

She acknowledged the need for the Medicaid integrity measures, but asked that the focus remain on "people, not politics." 

Winona Health CEO: 'Rural hospital closures are not hypothetical'

President and CEO of Winona Health Rachelle Shultz spoke about the impact that federal Medicaid cuts would have on rural communities, saying that seniors and single mothers would be disproportionately affected. She also said hospital closures could become a reality in some areas, adding that "We are now in uncharted waters."

President and CEO of Winona Health Rachelle Shultz said many rural hospitals rely on Medicaid funding to operate, and the closing of hospitals in some areas is a real possibility. 

"We are now in uncharted waters," Shultz said.