Minneapolis-based Hennepin Healthcare filed a notice of intervention Jan. 22 to interject itself into insurer UCare’s rehabilitation.
UCare planned to hand over its Medicaid and ACA businesses to fellow insurer Medica in 2026 as its Medicare Advantage line discontinues. In December, Minnesota took over rehabilitation for UCare, meaning the state controls the insurer’s assets and finances.
Hennepin is not the first health system to become involved as UCare undergoes state supervision. Minneapolis-based Fairview Health Services submitted a motion to intervene in December. Both systems reported outstanding claims, and Hennepin specifically said it wanted consideration of patient-care obligations. Fairview said UCare owes it about $80 million for medical services and $23.7 million for pharmacy, and Hennepin is claiming $115 million, as of Jan. 19, according to a Jan. 22 court filing.
“Hennepin Healthcare System’s interest as a UCare creditor is dynamic and will continue to evolve; HHS is not merely seeking payment of a static debt,” the health system said in the filing.
“The UCare rehabilitation and payments owed to other parties is a matter between them, the state of Minnesota and UCare,” a Medica spokesperson told Becker’s. “It has no impact on the transition of ACA and Medicaid members to Medica, which is responsible for paying claims for those members starting in 2026.”
Becker’s contacted UCare and will update this story if more information becomes available.
