DETROIT LAKES, Minn.—A game-changing Republican plan to quit fully funding Medicaid has caught the attention of a nursing home administrator here.

The plan would cap federal spending on Medicaid and force states, nursing homes, hospitals and others to make up the difference, which would grow over time.

"What a huge impact this could have, even here in Detroit Lakes," said Janet Green, regional director of Ecumen, which owns Emmanuel Nursing Home in Detroit Lakes and manages Sunnnyside Care Center near Lake Park for Becker County.

With an aging population, Minnesota could be especially hurt by the proposed changes to Medicaid, which covers many nursing home residents.

"In Minnesota, there are a rising number of older adults and people needing Medicaid to pay for long-term health needs," Green said.