Minnesota officials consider continuing lawsuit against feds over health care dollars

Even as Minnesota officials celebrate the restoration of $85 million in federal health care funds this week, they are considering whether to continue suing the federal government.

In December, the Trump administration abruptly withdrew subsidies which the state expected to use to fund MinnesotaCare. Just over 70 percent was returned Wednesday.

Minnesota Human Services Commissioner Emily Piper said her staff is discussing what to do next.

"We have until September 21 to decide whether or not we are going to re-open the lawsuit, to continue to litigate," Piper said.

"What the federal government has done is develop a new methodology to pay states, which is a reduced methodology from what it was before, but resulting in the federal government paying back some of the subsidies they should have paid in the first place," the commissioner explained.

Piper said no Minnesotans lost coverage because of the federal action, but it caused some state budgeting problems.

As a basic health program, MinnesotaCare provides coverage for 89,000 people who can't afford private insurance but make too much to qualify for Medicaid.

MinnesotaCare was expanded under the Affordable Care Act. The Trump administration has repeatedly sought to cut federal cost-sharing for it.

New York, which has a similar program, joined Minnesota in a lawsuit against the federal government. As part of a settlement, the U.S. Centers for Medicare & Medicaid Services agreed to a new formula for basic health plans.