UCare and the University of Minnesota have settled a dispute over the university's influence on the nonprofit health plan.
In a press release published Sept. 1, the two organizations said they resolved a lawsuit brought by the Minneapolis-based university in November, seeking to stop UCare from expanding its board of directors. The university founded the nonprofit plan in 1984 and relinquished its ownership of the organization in 1999, but it retained a majority share on its board of directors.
The university said expanding the board's size would diminish the university's influence on the health plan it created.
As part of the agreement, UCare will pay $100 million over three years to the university to fund health equity, rural health, mental health and family health initiatives. UCare will expand the size of its board of directors to provide "more consumer representation, diversity, and business expertise to better serve its members and mission," according to the news release.
"This next chapter of our work with the University of Minnesota to advance excellent patient care in marginalized communities — as well as primary care education and training — is extremely meaningful," Hilary Marden-Resnik, UCare President and CEO, said in the news release.
UCare has more than 600,000 Medicare, Medicaid and exchange plan members.
"UCare's renewed support of the university's community clinics and expanded health and wellness initiatives across the state have the potential to change the lives of underserved Minnesotans, particularly those who face barriers to care," said University of Minnesota Medical School Dean Jakub Tolar, MD, PhD.