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Three Democratic States Roll Back Medicaid Coverage for Undocumented Immigrants

Democratic governors backed the rollbacks to shrink budget deficits ahead of a scheduled 10% federal reduction in immigrant Medicaid funding.

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A woman and her 16-month-old son wait to see a doctor at a clinic. (AP Photo)
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Overview

  • Illinois cut coverage for undocumented adults aged 42 to 64 on July 1, a move projected to save $404 million.
  • Minnesota has ended its state health program for undocumented adults, securing $57 million in savings.
  • California will halt new enrollments in its Medi-Cal immigrant program in 2026 and introduce a $30 monthly fee for enrollees under 60 in 2027, with roughly 200,000 people at risk of losing coverage.
  • Health providers report that fear of deportation and federal data sharing with ICE are driving undocumented patients to skip preventive visits, switch to virtual appointments and forgo prescriptions.
  • Advocates and 20 states have sued over the Trump administration’s release of Medicaid recipient data to ICE and are challenging new HHS restrictions on treating undocumented patients at federally qualified health centers.