UCare will shut down in 2026 and Medica will take control of its existing health plans in the Medicaid, family and individual markets.
UCare is a nonprofit that primarily provides health care coverage for seniors and low-income Minnesotans. The company says the roughly 300,000 people receiving benefits and Medicaid through UCare will have their coverage transferred to Minnetonka-based nonprofit Medica.
The timeline for when this will happen is unclear.
"So, there is nothing for members to do today. We're committed to ensuring that there's a seamless transition, and people that have UCare coverage are signed up in 2026 for UCare coverage. There's nothing to do today, and nothing will change," according to Medica Vice President of Communications Keely Brenno.
She says they are assessing right now if layoffs will be part of the deal.
UCare was created more than 40 years ago primarily to offer health care coverage to low-income policyholders relying on Medicaid, but has recently struggled to navigate rising healthcare costs.