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UCare to Shut Down as Medica Takes Over Plans Covering 300,000 Members

State review now determines whether Medica can assume UCare’s remaining plans in early 2026.

Overview

  • UCare and Medica announced an agreement to transfer UCare’s Medicaid and Individual & Family plans for more than 300,000 members in Minnesota and western Wisconsin as UCare winds down in 2026.
  • The deal requires regulatory approval, with both organizations expecting closing in early 2026, and the Minnesota Attorney General’s Office reviewing the agreement.
  • Medica and state officials say members will keep coverage during the transition, with 2026 UCare Medicaid and individual plans moving to Medica with the same benefits, premiums and provider networks.
  • Roughly 25,000 people in integrated MedicareMedicaid products will receive enrollment guidance from the Minnesota Department of Human Services, and UCare Medicare Advantage enrollees must pick a new 2026 plan by Dec. 7.
  • UCare’s exit follows steep losses, including nearly $500 million in 2024, a failed financial trend test and a turnaround process, along with earlier cuts to Medicaid service in 11 counties and an OIG audit citing at least $4.7 million in disputed overpayments.