A Minnesota judge has ruled against UnitedHealthcare in a lawsuit challenging a Minnesota law barring for-profit insurers from the state’s Medicaid program.
In a decision issued June 30, Minnesota District Court Judge Mark Ireland ruled the statute, passed as part of a “jumbo-omnibus” at the end of 2024, stands.
In August 2024, UnitedHealthcare filed a lawsuit alleging the way the law was passed as part of a package including unrelated provisions violated the Minnesota constitution. The judge ruled the Medicaid provisions were germane to the bill’s title.
The state terminated UnitedHealthcare, the only for-profit insurer in its Medicaid program, at the end of 2024. Minnetonka, Minn.-based UnitedHealthcare managed care for around 32,000 Medicaid enrollees, a small slice of Minnesota’s 1.4 million Medicaid beneficiaries.
In a statement shared with Becker’s, UnitedHealthcare said the company is “disappointed with this ruling” and evaluating its options.
“UnitedHealthcare was unfairly removed from its hometown Medicaid program, which limited the options available to the citizens of Minnesota. Meanwhile, Minnesotans have had their options further restricted by other health plans choosing to leave the Medicaid program. The ruling continues to limit choice for individuals, families and children in Minnesota,” the company said.
In May, Bloomington, Minn.-based HealthPartners scaled back its Medicaid operations, exiting Minnesota’s Special Needs Basic Care Medicaid program and pausing enrollment in other plans.
