Major Medicare Update…
UCare, one of Minnesota’s largest nonprofit health insurers, has announced it will no longer offer Medicare Advantage (MA) plans in 2026, impacting 158,000 members.
The company will also lay off about 144 employees as part of the move.
Here’s what you need to know.
What’s Happening
UCare will exit the Medicare Advantage market starting in 2026. The Minneapolis-based insurer now covers about 158,000 members (roughly 26% of Minnesota’s MA market).
If the move is approved by the Centers for Medicare & Medicaid Services (CMS), members will need to pick new coverage during Medicare’s Annual Enrollment Period (AEP), which runs from October 15th to December 7th.
As part of the shift, UCare will cut about 144 jobs (around 9% of its workforce) — its second round of layoffs this year.
Why It Matters
UCare’s exit is significant because it is the second-largest MA provider in Minnesota, behind Blue Cross and Blue Shield of Minnesota.
The company reported more than $500 million in operating losses in 2024, driven by:
- Rising medical costs and higher-than-expected use of health services
- Payment rates that insurers say are insufficient to cover expenses
“This decision was not made lightly,” said UCare President and CEO Hilary Marden-Resnik. “UCare remains deeply committed to the health of Minnesotans and to supporting members through upcoming transitions.”
What Are Medicare Advantage Plans?
Medicare Advantage (also called Medicare Part C) plans are an alternative to Original Medicare, offered by private insurers approved by Medicare. These plans often bundle:
- Hospital coverage (Part A)
- Medical coverage (Part B)
- Prescription drug coverage (Part D)
- Potential Additional benefits such as dental, vision, or hearing
With Medicare Advantage, your coverage is administered by a private insurer rather than directly through the government. These companies receive payments from Medicare to provide your benefits.
It’s important to know that most Medicare Advantage plans operate with networks of doctors and hospitals, and some may require referrals to see specialists. However, they can offer lower monthly premiums and additional benefits that Original Medicare doesn’t include.
Medicare Advantage has grown significantly in popularity, with over 32 million beneficiaries enrolled in 2024, making up roughly 54% of all Medicare participants.
What UCare Will Continue Offering
UCare will remain active in other markets, including:
- Medicare Supplement (Medigap) plans
- Medicaid and MinnesotaCare
- Special Needs Plans (SNPs)
- Individual and family plans through MNsure
Need Help With Medicare?
If you have any questions about this situation (or Medicare in general), our licensed insurance agents are here to help.
Simply call us at +1 877-360-6565 (TTY: 771) or click the button below to schedule an appointment.