UCare reported an operating loss of $504 million in 2024 amid rising costs in its Medicare Advantage and managed Medicaid businesses, the Minnesota Star Tribune reported April 3.
The company posted revenue of nearly $6.3 billion, a margin of about -8.1%. In 2023, the company posted an operating loss of $82.1 million, or a -1.3% operating margin.
“Last year’s financial results reflect continued challenges of rising medical and specialty medication costs, and higher use of services outpacing government payments,” UCare CEO Hilary Marden-Resnik told the Tribune. “We are implementing a multi-year strategic plan to ensure long-term stability for our members, providers and partners.” A spokesperson for the company told the newspaper it is working to avoid layoffs.
UCare’s financial reserves decreased from nearly $1.1 billion at the end of 2023 to about $595 million at the end of 2024. At the end of 2024, the company had around 587,000 members. As of March, its Medicare Advantage enrollment was 182,000.
