UCare will lay off 80 employees, around 5% of its workforce, the nonprofit insurer confirmed in a statement to Becker’s.
The move comes as the company faces steep losses. In 2024, UCare reported a $504 million loss, a margin of -8.1%.
The company will also restructure as part of its effort to reduce costs, according to the statement. UCare will combine departments and consolidate vendors, and target high-cost areas like claims accuracy and pharmacy.
Rising medical and specialty pharmacy medication costs and utilization outpacing government reimbursing drove UCare’s losses in 2024, UCare CEO Hilary Marden-Resnik told the Minnesota Star Tribune in April.
Ms. Resnik said the company minimized layoffs “as best we could.”
“Our new organizational structure is necessary to deliver on our strategic priorities and financial turnaround plans,” Ms. Marden-Resnik said in a May 16 news release. At the same time, we will maintain our high standards of service to members.”
In addition to layoffs the company is eliminating most vacant positions and pausing hiring for most open positions, according to the release. Affected employees will receive outplacement support.
Minneapolis-based UCare has more than 600,000 members in Medicaid, Medicare Advantage and individual plans.
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