Minnesota Health Care Costs Skyrocket as Undocumented Immigrants Flood State Program—Will Vulnerable Residents Pay the Price?

Minnesota Republican lawmakers are raising serious concerns about the dramatic surge in enrollment by undocumented immigrants in the state’s taxpayer-funded health care programs. They argue that this surge is driving up costs and diverting crucial funds away from services for vulnerable Minnesotans.

Senator Jordan Rasmusson, Representative Isaac Schultz, Representative Jeff Backer, and Senator Paul Utke held a press conference to voice their alarm over the increase in health care enrollments since new policies took effect in January. These policies allow undocumented immigrants to access MinnesotaCare, a program that provides taxpayer-funded health care.

Senator Rasmusson, one of the chief authors of SF 690 and HF 10—legislation aimed at repealing eligibility for undocumented immigrants—expressed his concerns about the rapid growth in enrollees. “In just three months, the enrollment for taxpayer-funded health care for illegal immigrants is nearly triple what Democrats said it would be in its initial year,” Rasmusson stated. “This is an astounding surge that validates my concern that this change would incentivize illegal immigrants to come to Minnesota.”

Initial projections from the Department of Minnesota Management and Budget had estimated 5,784 enrollees by fiscal year 2026, growing to 7,741 by 2029, at an expected cost of $220 million. However, within the first three months, 17,396 undocumented individuals have already applied for coverage, potentially tripling the projected cost to more than $600 million.

Unlike other health care programs that receive federal matching funds, Minnesota must cover 100% of the costs for this new policy. Lawmakers warn that this could strain the state budget, diverting funds away from essential services for seniors, people with disabilities, and other vulnerable populations.

Representative Jeff Backer, Co-Chair of the House Health Finance and Policy Committee, noted that the Health Care Access Fund, which finances this new policy, also supports vital services for over 1.4 million Minnesotans. “We do not have a budget deal because Democrats want to prioritize illegal immigrants over the health care of Minnesotans,” Backer emphasized.

In an exclusive quote to Think American News, Senator Rasmusson underscored the Republican stance on prioritizing Minnesotans, adding: “Legislative Republicans are proposing to put the most vulnerable Minnesotans first. Minnesota Democrats are putting illegal immigrants first,” Rasmusson said. “Budgets are about trade-offs and priorities. This year, Governor Walz has proposed a billion dollars in cuts to nursing homes and services for families with disabilities, but he has stood by and continued to support taxpayer-funded health care for illegal immigrants.”

Republican lawmakers also expressed concern that the expanded benefits for undocumented individuals come at the expense of services for Minnesota’s most vulnerable residents. Senator Utke, lead Republican on the Senate Health and Human Services Committee, pointed out that new fees included in the current Health and Human Services bill would add $70 million in costs, which would ultimately affect all Minnesotans, from food and lodging businesses to public water systems.

On the other side of the debate, Democrats defend the policy shift as a necessary step toward providing equitable health care for all residents, regardless of immigration status. They argue that expanding health care to undocumented immigrants not only improves public health but also reduces emergency room overcrowding and the long-term costs of untreated health conditions. However, Republicans counter that the rapid enrollment surge and the resulting costs will only exacerbate the state’s financial burden and ultimately harm Minnesotans who rely on other essential services.

The debate over health care funding and eligibility for undocumented immigrants is expected to continue as the Minnesota Legislature works toward finalizing its budget. As lawmakers debate the priorities, the question remains whether a compromise can be reached that balances the need for expanded health care access with the need to protect critical services for Minnesota’s residents. The session may be marked by partisan differences, but as Minority Leader Johnson stated to Red River Farm Network, the process of legislating continues, with more compromise in the air than in years past.