Minneapolis-based Fairview Health Services submitted a motion Dec. 18 to intervene in the state of Minnesota’s rehabilitation of UCare, which underwent state control Dec. 17.
“Fairview should not be required to watch as a bystander while the state unilaterally resolves questions affecting the value of Fairview’s contractual rights,” read a memorandum submitted by Fairview in support of the intervention.
The filings from Fairview Health Services claimed UCare owes roughly $80 million for medical services and $23.7 million for pharmacy-related services, as of Dec. 12. The documents also expressed concern over how certain UCare enrollees will transition to Medica, which is acquiring the insurer’s ACA and Medicaid businesses.
UCare, a nonprofit health plan primarily for individuals who qualify for government-sponsored benefits, has been struggling in recent years. The insurer had an operating loss of $504 million last year and shared plans to exit the Medicare Advantage market. After missing a contract execution deadline, CMS formally terminated UCare’s MA contracts.
UCare and Medica declined to comment. The Minnesota Department of Health said it does not comment on pending litigation. Becker’s also contacted Fairview Health Services and will update this story if more information becomes available.
