The state of Minnesota could lose more than $500 million annually if proposed federal Medicaid cuts are signed into law.

The possible reduction is part of a plan by Congress to cut federal spending.

State health leaders explained these cuts will impact low-income communities and vulnerable populations the most.

“I want to be able to take care of myself. I want to live with some dignity,” Marijo Hickok, a Minnesotan, said.

Hickok views getting older as saying goodbye to your independence.

“You and I are used to thinking that somebody will be there to help me figure things out and to make it okay,” Hickok said.

But lately, she’s not so sure.

“We’re worried about Medicaid, worried about Medicare,” she said. “If I can’t afford my drugs, it’s going to be a problem. If I can’t afford to go to the doctors, that’s a real problem.”

House Republicans are proposing Medicaid funding cuts in what they call the “Big Beautiful Bill.”

The Minnesota Department of Human Services is already brainstorming how it can balance the state budget with gaps in funding.

“That will pose some very difficult questions with respect to provider reimbursement, who’s eligible for the program, potentially in addition to the benefits that we’re able to cover,” John Connolly, Minnesota Department of Human Services Medicaid director and deputy commissioner, said.

State leaders said the changes could lead to vulnerable hospitals closing and staff being laid off, while emergency rooms are overwhelmed.

“The ultimate result of these cuts would be the people would skip preventive care. Health outcomes would worsen and costs would rise for everyone, not just people who lose their Medicaid coverage,” Connolly said. “If these cuts go forward, families will face impossible choices, between caregiving and working, between food and medicine, and our hospitals, especially those in rural communities, will suffer and Minnesotans will fall through the cracks ultimately.”

“So scary. It’s so scary for me,” Hickok said. “’Who cares about these people? We should just throw them away’ is how it feels to me. The government’s plans are saying, ‘You don’t matter.’”

If these proposed cuts are passed, some of the changes could go into effect as early as the end of 2026.

Editor’s Note: The Minnesota Department of Human Services initially listed its annual losses as $1.6 billion. On Friday, this number was corrected by the department to be $500 million.