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Gov. Walz Pitches Changes to "Transform" Minnesota's Medicaid System that Face Unlikely Future in Legislature

Gov. Walz plans to eliminate managed care in Medicaid and centralize eligibility, dedicating $77 million for a study on human services reforms to address program fragmentation.

  • At a news conference in St. Paul, the governor unveiled a proposal to restructure Minnesota's human services system alongside Shireen Gandhi, James Clark, John Connolly, and Ahna Minge, aiming to modernize Medicaid and centralize administration.
  • Facing federal withholding, the administration argues the federal government is withholding $259 million in Medicaid funds and builds on a recent anti-fraud package announced last month.
  • Shifting eligibility, the governor's plan would phase out eight Managed Care Organizations and create a statewide Administrative Service Organization responsible for claims and provider services.
  • Several lawmakers warn the plan requires legislative approval and faces hurdles in the tied Legislature that adjourns May 18, with Torkelson dismissing its prospects and Hoffman calling for collaboration.
  • The plan funds a study and pilots and would dedicate $77 million over four years for a study, affect 1.2 million Minnesotans who rely on human services, and involves an RFP as DHS workforce exceeds 7,000.
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31 Articles

Duluth News TribuneDuluth News Tribune
+15 Reposted by 15 other sources
Center

Gov. Walz proposes major changes to state human services system

ST. PAUL — Gov. Tim Walz has rolled out a series of proposals that would change how the state’s human services system functions. The proposals include two major changes: eliminating the use of Managed Care Organizations in the Medicaid program and shifting Medicaid eligibility work from counties to the state Department of Human Services. The proposals would need buy-in from the Legislature. “You can trace these back 40 years where a lot of these…

·Cherokee County, United States
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AM 1100 The Flag WZFG broke the news in on Monday, March 9, 2026.
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