Minnesota Sues Over $243M Medicaid Withholding as Measles Cases Rise in Hennepin County
Minneapolis, MN – March 9, 2026 – Minnesota has sued to block $243 million in withheld Medicaid funds as measles cases climb in Hennepin County.
Minnesota officials have filed a federal lawsuit seeking to stop the withholding of hundreds of millions of dollars in Medicaid payments, a move that could affect hospitals, clinics and patients across Minneapolis. The legal action comes as measles cases continue to increase in Hennepin County and nearby states.
State moves to protect Medicaid funding
On March 2, Minnesota Attorney General Keith Ellison and the Minnesota Department of Human Services announced a lawsuit against federal health agencies over an attempt to withhold $243 million in Medicaid payments. The funds support Medical Assistance, the state’s Medicaid program, which provides health insurance to more than one million Minnesotans.
The lawsuit asks a federal court in Minneapolis to block the payments from being withheld while the case proceeds. State officials said the funding is critical to maintaining the health care safety net, including hospitals and community clinics that serve low-income residents.
In Minneapolis, major providers such as Hennepin Healthcare, Allina Health and Fairview treat large numbers of Medicaid patients. Any disruption in federal payments could strain hospital budgets and affect operations if delays persist.
Measles cases increase in Hennepin County
At the same time, health officials report that Minnesota has recorded 12 measles cases so far in 2026, with recent cases identified in Hennepin, Wright and Anoka counties. The update was reported March 5 as public health teams continue monitoring exposures and vaccination status.
The rise in cases follows concerns about declining childhood vaccination rates in parts of the state. Measles is highly contagious and can spread in schools, childcare settings and health care facilities if individuals are not protected.
Regional trends are also drawing attention. In neighboring North Dakota, health officials reported 23 confirmed measles cases as of March 7, including cases in counties that border Minnesota. Providers in the Twin Cities metro are watching for potential cross-border exposure.
What Residents Should Know
Medical Assistance remains in effect while the lawsuit moves forward, and state officials have said services continue as usual. Residents enrolled in Medicaid should watch for official updates from the Minnesota Department of Human Services regarding any changes.
For measles, local public health agencies continue to recommend staying current on routine vaccinations and following guidance if notified of a potential exposure.
If you have urgent symptoms, seek medical care. For general questions, talk with a licensed clinician.
