UCare has asked CMS to mutually terminate its Medicare Advantage plans for 2026, citing rising medical costs and challenges within the broader market.
“This decision was not made lightly,” President and CEO Hilary Marden-Resnik said Sept. 4 “UCare remains deeply committed to the health of Minnesotans and to supporting members through upcoming transitions.”
UCare has more than 600,000 members in Minnesota and parts of western Wisconsin, including 158,000 MA members. It is the second largest MA carrier in the market, with 26% percent market share. The company will continue to offer Medicaid, special needs plans, Medicare supplement and ACA coverage.
The MA exit will impact 9% of UCare’s workforce. The company previously said it would withdraw from 11 counties in Minnesota where it offers Medicaid plans, beginning in September, and affecting 88,000 beneficiaries. As part of that move, the company laid off 80 employees, or around 5% of its workforce.
UCare reported an operating loss of $504 million in 2024, amid rising costs in its MA and Medicaid businesses.
