Walz’s plan to radically change Medicaid, semi-explained - MinnPost
By Matthew Blake
Published on March 10, 2026.
Tim Walz, Minnesota's governor, has proposed a plan to radically change the state's Medicaid program, which provides health care for disabled, elderly and low-income Minnesotans. The proposal would add hundreds of state government jobs and result in job losses in counties and nonprofit health insurers. The Department of Human Services would directly reimburse providers who care for Medicaid patients under the proposal. However, critics argue that this proposal lacks credibility in the Minnesota state legislature. The governor also wants to eliminate managed care organizations that have been controlling Minnesota Medicaid since the 1980s. Currently, 80% of the state’s Medicaid enrollees find health care providers via managed care groups. The Association of Minnesota Counties supports the proposal, but questions are raised about its effectiveness.
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