UCare, a nonprofit health insurer based in Minneapolis, has announced plans to suspend its Medicare Advantage offerings. This decision was communicated on Thursday, as the company submitted a request to the Centers for Medicare and Medicaid Services to mutually terminate its Medicare Advantage products for the year 2026.
Hilary Marden-Resnik, UCare’s president and CEO, expressed that this decision was not made lightly. “UCare remains deeply committed to the health of Minnesotans and to supporting members through upcoming transitions,” she stated in a news release. UCare currently serves 158,000 Medicare Advantage members and holds a significant presence in the market, being the second-largest carrier with a 26% market share.
The nonprofit highlighted the escalating costs of healthcare and the increasing challenges within the overall market as contributing factors to this decision. The organization aims to focus its resources on areas where it can have the most significant impact, ensuring financial stability while continuing to provide quality and affordable coverage.
Pending approval of the request, members affected by this change will be required to select new coverage options during the upcoming annual enrollment period. However, UCare will continue to offer other plans, including Medical Assistance (Medicaid), MinnesotaCare, Special Needs Plans, individual and family plans, and Medicare Supplement.
The shift is expected to impact 9% of UCare’s workforce, reflecting broader organizational adjustments. This announcement follows closely on the heels of UCare’s previous decision made just two months ago to withdraw from non-senior Medicaid coverage in Ramsey County and 11 other counties, which affected 88,000 members.
Founded in 1984 by physicians from the University of Minnesota, UCare now serves more than 600,000 members throughout Minnesota and parts of western Wisconsin, indicating the scale and reach of its operations in the region.
