Weber & Nelson Law Office, PLLC
Minnesota Health Law Attorneys

Minnesota sues after health funding is slashed by $1 billion

If you’re a federal health care employee or benefit from low-income health care programs, the latest Trump administration reform could have a substantial effect on your life.

Abrupt and drastic cuts to the federal funding for basic health care programs are leaving some in the industry on edge. If you’re a provider, the cuts could affect the quality of care that you’ll be able to give to low-income patients. If you’re a resident benefiting from the program, your insurance coverage may be affected.

Here is how Minnesota is responding to the funding cuts and is taking on the Trump administration in federal court.

Low-income residents may lose their health insurance

Under Obamacare, states have the option to contract private insurance companies in order to provide affordable health insurance to low-income residents. New York and Minnesota are the only states to incorporate basic health programs and have collectively provided health insurance to over 800,000 of their residents.

However, the Trump administration has cut federal funding for the programs by $1 billion and the cut could put federal basic health care programs in jeopardy.

Minnesota and New York take on Trump

Minnesota and New York have filed a lawsuit against the Trump Administration in the U.S. District Court for the Southern District of New York after the administration withheld required federal funding. So far, the Department of Health and Human Services has withheld $32 million for Minnesota’s basic health care program, according to the petition. The lawsuit is seeking $1 billion to compensate in lost funding.

The dramatic reform to health care funding will likely affect the contracted insurance providers, healthcare programs and low-income residents who rely on the federal funding. The extent that funding cut will affect Minnesota’s ability to keep basic healthcare programs up and running remains unclear.

However, it may be possible that the states and the federal government will settle the lawsuit. If they reach an agreement, New York and Minnesota may be able to continue providing affordable, high-quality healthcare to its residents.