Medica plans to purchase certain contracts and assets from UCare as the latter’s legacy business winds down operations next year, the two companies said Nov. 17.
“We have the opportunity to build upon both Medica’s strengths and UCare’s legacy, allowing Minnesotans to continue to have a health care experience that ensures they feel cared for,” Medica CEO Lisa Erickson said.
The agreement encompasses UCare’s Medicaid and ACA businesses that cover more than 300,000 Minnesotans. The transaction is expected to wrap during the first quarter of 2026. Individuals in UCare’s 2026 Medicaid and individual and family plans will still receive services without interruption.
“This is a significant agreement that will enable us to preserve access to coverage for Minnesota’s most vulnerable members,” said Hilary Marden-Resnik, president and CEO of UCare.
Earlier this year, UCare decided to shut down its Medicare Advantage business and lay off employees. The insurer has suffered recent financial losses that led to retrenchment in its Medicaid business, as well.
