Minneapolis-based health care organization UCare announced in a joint statement Monday that Medica will be taking control of some existing plans as the nonprofit winds down operations.

Earlier this year, UCare cut Medicare Advantage plans, citing rising costs. In response, UCare says it began to explore "opportunities to transition its members to a community-focused, nonprofit organization with aligned missions."

The transaction, which is still subject to regulatory approval, is expected to close early next year.

"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," Hilary Marden-Resnik, president and CEO of UCare, said. "This is a significant agreement that will enable us to preserve access to coverage for Minnesota's most vulnerable members."

UCare says those enrolled in one of its plans for the 2025 calendar year will continue to receive coverage, and eligible individuals can continue to enroll in coverage offered by either Medica or UCare. Individuals already enrolled in UCare's 2026 Medicaid and Individual and Family Plans should also continue to receive service without interruption. 

"Throughout the coming weeks and months, continuity of care will be our greatest focus, as we ensure that UCare members feel cared for and confident in their ability to receive the care they need," Lisa Erickson, CEO of Medica, said.

The Minnesota Department of Human Services is working on an enrollment plan that will provide continuity of care for the roughly 25,000 people who were enrolled in UCare's Minnesota Senior Health Options and integrated (Medicare plus Medicaid) Special Needs Basic Care products.

"We know any time there is an announcement like this, there can be confusion and concern," John Connolly, Minnesota Department of Human Services deputy commissioner and state Medicaid director, said. "For most enrollees, the process should be seamless, thankfully."

Connolly adds that the department and UCare will be reaching out to people with integrated Medicare and Medicaid plans soon with the next steps.

Founded over 40 years ago, UCare provides services to more than 300,000 members throughout Minnesota and western Wisconsin.

Tax records show UCare reported a $120 million loss in 2023. The year prior, the nonprofit had a net income of $321 million.

Medica, which is based out of Minnetonka, has more than 1.4 million members across nine states and reported a net income of $28 million in 2023.

Erikson will stay on as the CEO of Medica.

Neither company has said how the transition will impact employees at UCare.

Note: The video above originally aired on Oct. 22, 2025.