More than a million Minnesotans rely on Medicaid for services, which include therapy and substance abuse support.
Roots Wellness Center in St. Paul is concerned about the federal government’s Medicaid funding freeze in Minnesota. The clinic reports that 80% of its funding comes through Medicaid.
People come to the clinic for treatment, including kids and adults with PTSD, depression, suicidal ideation and anxiety, said Katy Armendariz, the owner of Roots Wellness Center.
The federal government has given Minnesota 60 days to provide documentation for Medicaid claims from the last quarter of 2025 to check for fraud. Until then, $260 million will be withheld.
When asked about what would happen with the next payment that the clinic is set to get from the state, Armendariz said, “I’m guessing we might not see it.”
The Minnesota Department of Human Services said in a statement on Friday, “We are still determining how we manage without these significant funds, particularly as the timeframe for resolution may be lengthy and complicated.”
Funding concerns
“This is a really big deal, this is a five-alarm fire for Minnesota right now,” said NAMI Minnesota Executive Director Marcus Schmit.
Advocates emphasize that Medicaid is the largest funder of mental health resources in Minnesota. If payments stop, impacts will be felt quickly.
“We know this is something that is not sustainable. We’re going to see an impact fairly quickly,” Schmit said.
Some centers warn of potential closures if the funding freeze continues.
“We could close. We’re going to have to cut positions, and if it goes on too long, we can’t afford payroll, then we would have to close,” said Armendariz.
The Minnesota Department of Human Services told 5 EYEWITNESS NEWS that it is “looking at [its] options,” aiming to preserve crucial federal funding.
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