UCare ending operations, moving all remaining health insurance enrollees to Medica

One of Minnesota’s largest health insurers is shutting down at the start of next year. 

Minnesota-based UCare announced the move in a statement issued Monday. According to officials with the nonprofit, its health insurance plans for more than 300,000 members across Minnesota and western Wisconsin will be transferred to Medica, another large nonprofit health insurer based in Minnesota.

“Now we have the opportunity to build upon both Medica’s strengths and UCare’s legacy, allowing Minnesotans to continue to have a health care experience that ensures they feel cared for,” Medica CEO Lisa Erickson said in a news release.

Medica has more than 1.4 million members across nine states.

UCare said anyone with one of its plans this year will not be affected. Patients enrolled in a UCare plan for 2026 can stay on that plan as it’s transferred to Medica. The nonprofits said they’ll keep the same benefits, premiums and provider networks. 

Leaders of UCare and Medica said they’re aiming for a “seamless” transition.

“This is a significant agreement that will enable us to preserve access to coverage for Minnesota’s most vulnerable members,” UCare CEO Hilary Marden-Resnik said. 

The announcement came after a string of challenges at UCare. Earlier this year, the insurer announced plans to stop state-funded coverage in 11 counties, forcing about 80,000 Minnesotans to find new plans. Then, UCare dropped its Medicare Advantage plan, impacting another 158,000 people. 

UCare and Medica leaders said they expect the transfer deal to close in early 2026. They said they’ll work with state agencies and the Minnesota Attorney General’s Office to file for regulatory approval.

UCare’s roots go back to 1984, when it was founded by physicians at the University of Minnesota as a demonstration project to provide health care coverage for lower-income patients. It became independent from the university in 1999, though the U maintained a presence on UCare’s board of directors.

Stephen Parente is a professor of finance at Minnesota Carlson and the Minnesota Insurance Industry chair of health finance. He joined MPR News host Nina Moini to talk about the change. Listen to their conversation in the audio player above.