UCare’s Withdrawal From Medicaid Plans To Affect 88,000 Minnesotans In 11 Counties

UCare’s Withdrawal From Medicaid Plans To Affect 88,000 Minnesotans In 11 Counties

MINNESOTA — More than 88,000 Minnesotans will need to find new health coverage this fall as UCare, one of the state’s largest nonprofit health plan providers, prepares to exit Medicaid programs in 11 counties starting September 1, 2025.

The withdrawal affects members enrolled in either MinnesotaCare or the Prepaid Medical Assistance Program (PMAP)—the state’s Medicaid-managed care plan for low-income adults and families. Residents in the following counties will be impacted:

Benton, Chisago, Crow Wing, Pennington, Ramsey, Roseau, Sherburne, Stearns, St. Louis, Wadena, and Wright.

UCare Cites Financial Losses

UCare attributed the exit to unsustainable financial losses, stemming from a mismatch between state payments and the rising costs of care.

“UCare has experienced significant losses in Medicaid because of a payment mismatch between the government payments we receive and the rising cost of care among our members,” the organization said in a statement to WCCO. “We remain as committed as ever to Minnesota Medicaid and are confident this short-term solution will result in long-term sustainability. We look forward to returning to these counties in the future.”

The change does not affect UCare’s Medicaid plans for seniors or people with disabilities, which will remain intact.

Minimal Disruption Expected, State Says

The Minnesota Department of Human Services (DHS) responded with assurances that the transition will be managed to minimize disruption for enrollees. According to DHS, most people affected should be able to find comparable coverage through other state-approved plans such as Blue Plus and Medica, whose provider networks substantially overlap with UCare’s.

“We can never guarantee that enrollees can maintain access to their providers even when remaining in the same health plan; however, we anticipate minimal disruption,” DHS stated. “Minnesota's HMO continuity of care statute requires health plans to allow people to continue to see their current provider for up to 120 days if they are in the middle of a course of treatment.”

DHS also advised impacted individuals to confirm provider networks with new health plans before finalizing any changes.

What Affected Members Should Know

• Who is affected? Medicaid recipients (MinnesotaCare or PMAP) in the 11 listed counties.
• When does the change happen? UCare will stop providing coverage on September 1, 2025.
• What should members do? DHS recommends that enrollees contact their current providers to confirm in-network status with other available health plans.
• Will provider care be interrupted? Not likely. Under state law, patients can generally continue treatment with their existing provider for up to 120 days.

Broader Medicaid Concerns in Minnesota

The announcement adds to ongoing concerns about the future stability of Medicaid funding in Minnesota. State officials have previously warned that proposed federal reforms—referenced by some legislators as part of former President Trump’s “big, beautiful bill”—could result in steep Medicaid cuts, jeopardizing coverage for thousands and placing additional pressure on local health systems and taxpayers.

With over one million Minnesotans relying on Medicaid and MinnesotaCare for health coverage, the withdrawal underscores the fragility of funding systems and the balancing act between cost and care.

As the September transition approaches, UCare and state agencies are working to ensure that impacted members receive timely communication and support in selecting new plans.

For more information or to explore alternative plans, Minnesotans can visit the Minnesota Department of Human Services website or contact their local county health services office.

MinneapoliMedia