REGIONAL — The surprise announcement on Monday that UCare will shut down next year sent a wave of confusion through Minnesota this week as more than 300,000 members learned their plans will be transferred to Medica. Behind that larger number sits a more urgent reality. About 180,000 Minnesotans will see meaningful changes to their coverage heading into 2026, including more than 150,000 seniors losing their UCare Medicare Advantage plans and roughly 25,000 people on integrated Medicare and Medicaid programs who will need new instructions.
The confusion was immediate. Across Minnesota, social media lit up with panicked questions, rumors, and scattered advice as people tried to sort out who needed to switch plans and when. Some worried their coverage would end on Jan. 1. Others were unsure if the name “UCare” would disappear from their cards before they could make appointments.
The tone was different in the What’s Up Ely, MN Facebook group, where the focus turned quickly to helping anxious neighbors find reliable information. Local members posted links to state resources, shared contact numbers, and tried to steer people away from speculation. It became one of the more constructive hubs for residents searching for clear guidance in the middle of the day’s uncertainty.
The reality is far less chaotic, though not everyone gets to coast through unaffected.
Medica and UCare say nearly all members can stay right where they are next year. Anyone on a UCare plan for 2025 is covered through Dec. 31, and most people who already picked a UCare plan for 2026 will keep that plan under Medica without changes to premiums, provider networks or benefits.
MNsure backed that up in a statement this week.
“There are no changes to coverage,” MNsure said.
That stability does not extend to Medicare Advantage. UCare had announced earlier this year that it was leaving the Medicare Advantage market, a move driven by heavy financial losses. Rising medical and pharmacy costs made it impossible to keep that side of the business afloat. That decision, not Monday’s shutdown announcement, is what is forcing about 154,000 seniors to find new coverage for 2026.
For those members, the timeline is already running. Medicare’s Annual Enrollment Period ends Dec. 7. Anyone who wants uninterrupted coverage on Jan. 1 needs to choose a new plan before that date. If they miss the deadline, they will be placed into Original Medicare by default and will lose prescription drug coverage. Because the plan is closing, seniors have a special enrollment window through Feb. 28 to choose a new Medicare Advantage plan with drug coverage. But if they miss that extended deadline, they risk facing a lifetime penalty on Part D premiums.
UCare is directing Medicare Advantage members to explore plans through brokers, Minnesota Aging Pathways, 1-800-MEDICARE, or medicare.gov. The nonprofit is also urging members to keep the plan closure letter sent by the Centers for Medicare and Medicaid Services, which confirms their right to use the extended enrollment period.
Another group facing changes includes roughly 25,000 Minnesotans enrolled in integrated Medicare and Medicaid programs, including Minnesota Senior Health Options and integrated Special Needs Basic Care. The Minnesota Department of Human Services says these enrollees do not need to take immediate steps, but Medicare’s involvement means extra coordination with the federal government.
DHS deputy commissioner and Medicaid director John Connolly acknowledged the anxiety created by the announcement.
“We know any time there is an announcement like this, there can be confusion and concern,” Connolly said. “For most enrollees, the process should be seamless.”
The long-term picture is still evolving. Medica CEO Lisa Erickson said the agreement allows both organizations to preserve stability for vulnerable Minnesotans.
“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 said.
UCare CEO Hilary Marden-Resnik framed the transfer as part of the effort to maintain access to coverage statewide.
“This is a significant agreement that will enable us to preserve access to coverage for Minnesota’s most vulnerable members,” she said.
For Minnesotans trying to make sense of it all, the simplest guidance is this. If you are on Medicare Advantage, you must shop for a new plan. If you are on an integrated Medicare and Medicaid plan, wait for DHS and UCare to send specific instructions. And if you are on a private individual plan through MNsure or on most Medicaid plans, you do not need to do anything. Your coverage rolls forward automatically while the transition moves behind the scenes.
UCare has posted resources for Medicare Advantage members at https://www.ucare.org/members/medicare/plan-closures#enrollmentdates.
Minnesota Aging Pathways also provides resources for Medicare open enrollment online at https://mn.gov/aging-pathways/medicare/medicare-open-enrollment/.
MPR News contributed to this report.