Minnesota hospitals hoped for a $1 billion windfall, but the OBBBA has killed their plan

WASHINGTON – Minnesota’s hospitals thought they had a great idea to increase the money they receive for treating Medicaid patients by leveraging federal dollars.

But the One Big Beautiful Bill Act threatens to shred that plan and is even likely to kill it outright. The at-risk proposal was approved by the state Legislature in June and hospitals hoped it would bring them $1 billion in increased revenues every year.

The Minnesota Hospital Association developed the plan to boost hospital revenues because they lose money on every Medicaid patient they treat. A study by the American Hospital Association found that hospitals were paid just 88 cents for every dollar spent caring for Medicaid patients, who qualify for the program because they have low incomes.

“It’s a difficult situation for ho