UCare will withdraw from 11 counties in Minnesota where it offers Medicaid plans beginning in September through the end of 2025, the company said in a statement shared with Becker’s.
The company made the “difficult decision” to withdraw from several of its service areas as it prioritized its financial turnaround, the company said in a July 7 statement.
“Like health plans across the nation, UCare has experienced significant losses in Medicaid because of a payment mismatch between the government payments we receive and the rising cost of care among our members,” the insurer said.
UCare reported an operating loss of $504 million in 2024, amid rising costs in its Medicare Advantage and Medicaid businesses.
The county exits will affect 88,000 Medicaid beneficiaries, the Minnesota Star-Tribune reported July 7. Each county UCare is exiting has at least two other health plan options, the company told Becker’s. UCare’s service area for its Medicaid plans for older adults and people with disabilities remains unchanged.
“We remain as committed as ever to Minnesota Medicaid, and are confident this short-term solution will result in long-term sustainability. We look forward to returning to these counties in the future,” the insurer said.
