Minnesota’s uninsured rate jumped last year — and it could be going higher

State officials’ best estimate for the number of Minnesotans who lack health insurance climbed 55% from 2023 to 2025, a worrisome jump for cash-strapped patients and a health care system already concerned about further coverage losses from Medicaid cuts on the horizon.

The increase apparently was driven by cuts in public health insurance coverage. And it didn’t spare kids.

The estimated number of children ages 18 and younger lacking health insurance grew to about 62,000 — a striking 72% increase from two years earlier, according to survey data released Tuesday by the Minnesota Department of Health.

Overall, the state’s uninsured rate increased from an all-time low of 3.8% in 2023 to 5.8% in 2025. That translated to roughly 328,000 Minnesotans lacking insurance in the waning months of last year, when respondents filled out the surveys.

“It’s definitely a substantial increase from a time when Minnesota enjoyed high rates of coverage,” said Stefan Gildemeister, the state’s health economist.

More people going without health insurance coverage creates greater health and financial risks for residents and health care providers.

The cost of getting health care has become so expensive that uninsured patients are more likely in many cases to skip care than take on medical debt, putting them at risk of worse and more costly health problems down the road. Hospitals and clinics, in turn, have greater financial risks as more patients lack coverage for medical bills and turn to hospital charity care programs.

The Health Department has been publishing reports on the state’s uninsured rate for more than a decade, based on surveys taken every other year. The new numbers show Hispanic and Black Minnesotans, as well as lower-income state residents, were again more likely to go without health insurance.

“The sharp increase in uninsured Minnesotans over the past two years is deeply disturbing, as are the long-standing disparities in the uninsured rate by race/ethnicity and income that continue to persist,” Minnesota Health Commissioner Dr. Brooke Cunningham said in a statement.

Beyond 2025, the Health Department survey found more insured Minnesotans were concerned about losing coverage in the near future.

The state got survey responses from 16,254 respondents. Among those with health insurance, 12.4% said they were worried about losing coverage, up from 7.7% in 2023. The reasons for their concern shifted, as well — more people were worried about coverage becoming too expensive (28.8% compared to 17.5% in 2023). The survey had a margin of error of +/- 0.8%.

Tuesday’s report found the share of Minnesotans covered by government programs fell more than four percentage points to 39.6%. That included people with benefits through the federal Medicare program for seniors as well as lower-income residents covered by Medicaid.

The decline in government coverage corresponded with the state restarting its process for determining eligibility for Medicaid. These “redeterminations,” paused during the COVID pandemic, started during the second half of 2023 and wrapped up in mid-2024.

The share of people who got coverage through employers grew two points to 51.4%, but the increase didn’t fully offset the number of people who lost government coverage.

Health insurance purchased by individuals themselves remained statistically unchanged between the last months of 2023 and the same period two years later, according to the report.

Already this year, Minnesota has seen a decline in the number of individuals who buy coverage through MNsure or directly from insurers in Minnesota. The reduction likely stems from Congress not extending certain subsidies that were lowering premium costs for many.

Medicaid changes signed into law during summer 2025 will also make coverage harder to maintain, particularly with changes coming in 2027. That’s when coverage will become contingent on work requirements for many beneficiaries, who also will need to renew their coverage more frequently.

The Medicaid program next year also will impose more limits on retroactive coverage.

“Researchers have concluded that policy changes in the law are expected to reduce access to and affordability of health insurance coverage, likely giving rise to more Minnesotans lacking health insurance in the years to come, with resulting pressures on the state’s individuals, families, and health care system,” the Health Department said in its report.

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