Health insurer Medica on Monday announced the acquisition of all of rival UCare’s 2026 Medicaid and individual and family plans.
UCare, based in Minneapolis, currently covers about 300,000 members in Minnesota and western Wisconsin. Minnetonka-based Medica covers 1.4 million members across nine states, according to a press release.
The announcement follows UCare’s decision earlier this year to terminate its Medicare Advantage contracts as the company’s board began exploring opportunities for an acquisition, according to the release. Private Medicare Advantage plans augment U.S. government Medicare coverage for seniors.
“As a nonprofit, community-focused health plan, Medica has a long history of serving members in Minnesota, guided by our mission and trusted relationships with providers, customers and members,” said Lisa Erickson, CEO of Medica, in the release. “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.”
Erickson will continue as Medica’s president and CEO.
“Combined, UCare and Medica have nearly a century of industry expertise and a shared commitment to community-driven coverage for those who need it most,” said Hilary Marden-Resnik, president and CEO of UCare. “This is a significant agreement that will enable us to preserve access to coverage for Minnesota’s most vulnerable members.”
The transaction is expected to close in the first quarter of 2026, subject to closing conditions including required regulatory approvals. Terms of the agreement were not announced.
The release says individuals enrolled in UCare’s plans will continue to receive services without interruption.
In a separate news release, state Sen. Matt Klein. DFL–Mendota Heights, promised to “monitor developments, assess legislative oversight needs, and seek input from consumers, providers, and agencies across the state to fight for consumer choice, patient access, and quality of care in our healthcare system.”
Klein is chair of the Senate Commerce and Consumer Protection Committee.
“I am deeply concerned about the long-term implications of shrinking consumer choice, particularly as Minnesota braces for unprecedented instability within both the provider and payer landscape,” Klein’s release says.
MNsure, the state’s health insurance marketplace, said in its own release that UCare members’ plans through the exchange will not change in coverage or cost for plan year 2026.
“MNsure is working closely with both UCare and Medica to ensure a smooth transition and uninterrupted coverage for Minnesotans,” the state agency said.
Related Articles
A closer look at the unapproved peptide injections promoted by influencers and celebrities
NIH funding cuts have affected over 74,000 people enrolled in experiments, a new report says
Novo cuts Wegovy prices, but doctors still see cost challenges for patients
FDA adds strongest warning to Sarepta gene therapy linked to 2 patient deaths
Judge says he’ll approve opioid settlement with OxyContin maker Purdue and Sackler family
Leave a Reply