UCare terminates Medicare Advantage plans for 2026 amid financial turmoil

UCare, one of the largest providers of privatized Medicare plans in Minnesota, plans to stop offering Medicare Advantage plans used by thousands of Minnesota seniors in 2026 as it continues to face significant financial headwinds.

The Minneapolis-based nonprofit insurer enrolled more than 180,000 Minnesotans in its Medicare Advantage (MA) program this year, an increase of about 20%, according to a Minnesota Star Tribune analysis of federal data. UCare has 158,000 MA members as of today.

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

With Medicare’s annual enrollment period set to start in just over a month, UCare’s decision to not offer MA coverage in 2026 will transform the state’s private Medicare market at a time when insures face financial challenges from increases in health care service use and stagnant payment rates they say are insufficient.

UCare serves patients with publicly funded or subsidized health insurance. The insurer will continue offering supplemental plans for traditional Medicare, as well as MinnesotaCare coverage, special needs plans, and individual and family plans on MNsure.

In 2025, UCare had the second-highest enrollment in the state for MA plans.

For decades, health insurers competed to grow their MA businesses, which have become as popular as original Medicare administered by the federal government. But earlier this year, UCare stopped offering commissions for brokers who signed up new MA members.

UCare had an operating loss in 2023, which ballooned to more than $500 million in 2024.

UCare said in its statement Thursday that the cost of health care has dramatically increased in the past two years. Now, UCare is focusing its resources “on programs where it can have the most impact” to maintain stability, the nonprofit added.

Earlier this year the nonprofit health maintenance organization (HMO) had said it would stop providing state and federally funded Medicaid coverage in 11 counties, including Ramsey County. The move came as the insurer looked to make up for losses in the Medicaid and Medicare Advantage programs.

Medicaid is the largest business line at UCare, which said it will continue managing benefits for about 250,000 enrollees in the government program following the Sept. 1 coverage cuts.

Blue Cross and Blue Shield of Minnesota is the only larger Medicare Advantage provider in Minnesota, with nearly 200,000 enrollees, according to the analysis.

This developing story will be updated.

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