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If we could redesign our health care system from scratch, we likely wouldn’t build it the way it exists today. There is an urgent need to restructure both our payment models and the way we deliver care, even before the sweeping cuts to Medicaid circulating in Washington go into effect. The foundation of our safety-net health care infrastructure is already challenged, and these federal proposals would exacerbate the unsustainability and result in patients falling through the cracks.
The structure of health care disadvantages safety-net health systems — like Hennepin Healthcare System (HHS) — that serve all who need care regardless of their health care coverage. We consistently struggle to survive financially. Hennepin Healthcare is already in a vulnerable financial state, we are not immune to economic challenges across the nation, and we have seen others cut programs and reduce their workforce in response.
Medicaid is foundational to enable systems like ours to continue to provide care. Hennepin Healthcare specifically relies on Medicaid support for nearly half of those we serve, or to nearly 95,000 of our community members. We estimate a potential $100 million loss from Medicaid cuts in current proposals, which will only compound existing shortfalls due to rising costs and a rising percentage of patients who are uninsured. Put simply, we cannot survive or achieve our mission without Medicaid, and we will continue to struggle with the status quo.
Medicaid doesn’t just help Medicaid patients — it supports the entire health care system, including those with private insurance. Medicaid helps cover critical services that are underfunded — or not funded at all. Without it, services cannot be sustained and everyone loses.
Here’s what’s at stake at Hennepin Healthcare if Medicaid cuts take place:
• Trauma care for all Minnesotans: Our Level I Adult and Pediatric Trauma Center — with more than 90,000 visits a year — relies on Medicaid for 62% of patient coverage. Across the state, Minnesotans with commercial insurance rely on this infrastructure when minutes matter.