ST. PAUL – House Speaker Rep. Lisa Demuth, R-Cold Spring, is raising concerns after new data reveals enrollment in MinnesotaCare for those in Minnesota illegally has more than doubled initial estimates, sending program costs skyrocketing well beyond projections.
The Minnesota Department of Health indicates 17,396 people in the state illegally are now enrolled in the state-funded health insurance program, more than twice the original forecast of 7,700. Demuth said the data was not made publicly available and only came to light after persistent inquiries by House Republicans.
The expansion, passed by Democrats in 2023, was originally projected to cost $196 million over four years. With current enrollment, that cost has ballooned to an estimated $550 million and continues to grow.
“These numbers are shocking,” Demuth said. “Families across Minnesota are already dealing with higher prices. Instead of prioritizing the services people count on, we’re now looking at spending over half a billion dollars on a program that wasn’t clearly presented to the public from the start.”
Unlike traditional MinnesotaCare recipients, Demuth indicated people who are in Minnesota illegally are not eligible for federal funding support. Typically, the federal government covers 90 percent of program costs, with the state responsible for the remaining 10 percent. Because this population is ineligible for federal matching funds, Minnesota taxpayers are covering the full cost of their coverage.
At the same time, Minnesota faces a projected $6 billion budget deficit. Demuth warned that continued funding for the expansion could jeopardize other critical healthcare services such as ambulance operations, rural hospitals, and emergency care.
“This really comes down to common sense and honoring our priorities,” Demuth said. “We’ve got to make sure taxpayer dollars are going to support the Minnesotans who rely on these services every single day.”
Republicans have introduced legislation to repeal the MinnesotaCare expansion for people in the state illegally, citing the need to control costs and protect essential services. Demuth said a repeal would save taxpayers hundreds of millions of dollars over the next four years and reduce incentives for illegal immigration to the state.
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