Rep. Danny Nadeau Raises Concerns Over Proposal to Centralize Minnesota’s Human Services System

ST. PAUL – Representative Danny Nadeau (R-Rogers) released the following statement in response to Governor Tim Walz’s proposal to eliminate Minnesota’s managed care model for Medical Assistance and MinnesotaCare:

“Efforts to improve oversight in Minnesota’s human services programs deserve careful review,” Nadeau said. “But eliminating the managed care system raises serious concerns about concentrating authority in state government, expanding bureaucracy, reducing transparency and accountability, and exposing taxpayers to unpredictable long-term costs.”

Minnesota currently relies on multiple managed care organizations to administer these programs—an approach that helps control costs, distribute financial risk, and maintain provider networks. The Governor’s proposal would replace this decentralized model with a single state-run administrative structure.

Nadeau noted that Minnesota has already experienced major disruption in its health care landscape with the loss of UCare, reducing choice and stability for many Minnesotans.

“At a time when families and providers are already adjusting to significant changes in coverage options—and as we work to address new federal Medicaid requirements—further centralizing control within state agencies could compound uncertainty and strain an already fragile system,” he said.

“A shift like this would remove options for people, along with the risk-sharing that helps keep costs predictable,” Nadeau said. “Replacing a system with built-in checks and balances with a single centralized entity in St. Paul raises significant questions about cost, access, accountability, and long-term sustainability.”

Nadeau also noted Minnesota’s recent fraud challenges as a reason for caution.

“Minnesota has experienced serious fraud across several programs administered by state agencies,” he said. “Those failures stemmed from a lack of oversight, not a lack of government power. Expanding that same structure is unlikely to solve the problem.”

He emphasized the need for a thorough legislative and stakeholder review before any major restructuring moves forward.

“These programs serve vulnerable Minnesotans who rely on stable, reliable access to care,” Nadeau said. “Before dismantling the current system, we need clear answers on how this proposal will improve services while protecting taxpayers.”

Representative Nadeau said he will continue reviewing the proposal and working with colleagues to ensure Minnesota’s human services programs remain accountable, sustainable, and focused on delivering care to those who need it most.

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