Walz seeks Medicaid reform, faces bipartisan skepticism

Gov. Walz outlines major plan to overhaul DHS

Gov. Tim Walz outlines his plan to centralize and modernize the Department of Human Services after its Medicaid programs have been hit with repeated fraud issues.

(FOX 9) - Minnesota Governor Tim Walz has unveiled a plan to overhaul how Minnesota manages Medicaid, aiming to centralize administration and reduce fraud.

Proposed changes to Medicaid oversight

What we know:

The governor's proposal suggests that the Department of Human Services (DHS) take over Medicaid eligibility processing and administration. The shift would move responsibilities away from the current eight managed care organizations like HealthPartners, Medica, and Blue Cross.

The plan aims to modernize outdated technology and streamline healthcare networks for patients.

Gov. Tim Walz highlighted the need for modernization, stating, "Our system, both IT systems, are antiquated. And our delivery system over the years has become too complex."

Pushback from legislators

What they're saying:

Republican lawmakers and some Democrats have expressed skepticism about the proposal.

Rep. Paul Torkelson said, "This proposal, as described by the governor, it has no future as far as I can tell."

Despite opposition, there is some agreement on the need to modernize the systems used to administer Medicaid programs.

Torkelson noted, "There is one area, though, where the governor and I agree strongly. That is the modernization of the systems that we use to administer these programs."