UCare drops Medicare Advantage coverage in 2026

Oct. 15—DULUTH — As

Medicare enrollment opened Wednesday,

UCare customers received notice of the nonprofit's cancellation of Medicare Advantage plans in the coming year.

In September, Minneapolis-based UCare announced that it had asked the Centers for Medicare and Medicaid Services to mutually terminate its Medicare Advantage product offerings for 2026.

In a letter dated Oct. 2, UCare notified customers of the drop in coverage and provided a list of alternative companies offering Medicare Advantage plans in the area.

UCare is an independent, nonprofit health plan providing coverage and services to members throughout Minnesota and Wisconsin.

It is the second-largest Medicare Advantage carrier in the market, with 26% market share, according to a news release. The change will impact 158,000 members, including many seniors, who will now need to seek a new health insurance provider.

"This decision was not made lightly," UCare President and CEO Hilary Marden-Resnik said in a statement. "UCare remains deeply committed to the health of Minnesotans and to supporting members through upcoming transitions."

During the current government shutdown, mission-critical activities and updates related to Medicare Open Enrollment will continue, according to

medicare.gov.

UCare will continue offering Medical Assistance (Medicaid), MinnesotaCare, Special Needs Plans, Individual & Family Plans, and Medicare Supplement, according to the release.

Over the past two years, the cost of health care has increased significantly, in addition to challenges in the overall market, UCare noted in its release. Government payment rates have not kept pace with the rising costs.

In 2024, UCare reported an operating loss of $504 million. To maintain financial stability and continue providing quality, affordable coverage, UCare said it will focus its resources on programs where it can have the most impact.

With the drop in coverage, UCare announced it will also lay off 9% of its workforce, amounting to approximately 144 jobs, in the second round of layoffs this year.

Earlier this year, 80,000 Minnesotans were impacted when

UCare temporarily dropped coverage of Medicaid in 11 counties,

including St. Louis County. In May, the nonprofit laid off 80 employees, in addition to halting hiring and eliminating open positions.

Medicare enrollment is open through Dec. 7.

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