CMS has formally terminated UCare’s Medicare Advantage contracts after the insurer declined to sign agreements for 2026.
The move impacts about 158,000 MA members in Minnesota and western Wisconsin, where UCare is the second-largest MA carrier with 26% market share.
UCare said earlier this month that it sought to mutually exit the MA market in 2026, citing rising medical costs and financial pressures. The nonprofit reported a $504 million operating loss in 2024 and announced workforce cuts tied to its MA exit.
On Sept. 22, CMS said it determined the company was out of compliance after it missed an Aug. 31 contract execution deadline. The agency said it denied UCare’s request to mutually terminate its three MA contracts and instead moved to terminate them directly. Beginning Oct. 8, UCare will be barred from marketing its MA plans or enrolling new members.
The termination does not affect UCare’s other lines of business, including Medicaid, Medicare supplement, ACA marketplace coverage and special needs plans.
