Duluth Medicare Enrollment Update

Medicare enrollment kicked off on Wednesday, and UCare customers were informed that their Medicare Advantage plans would be discontinued next year. In September, the Minneapolis-based nonprofit announced it had requested the Centers for Medicare and Medicaid Services to stop offering Medicare Advantage products starting in 2026.

A letter from UCare, dated October 2, alerted customers to the reduced coverage and included a list of other companies providing Medicare Advantage plans in the area. UCare operates as an independent, nonprofit health plan that serves members across Minnesota and Wisconsin.

With a 26% market share, UCare is the second-largest Medicare Advantage provider. The decision will impact about 158,000 members, many of whom are seniors and will need to seek new health insurance options.

“This decision wasn’t made easily,” stated UCare President and CEO Hilary Marden Reznik. She emphasized the organization’s ongoing commitment to the health of Minnesotans and ensuring support for members during this transition.

Despite the ongoing government shutdown, UCare reassured that important activities and updates regarding Medicare Open Enrollment would proceed. The company will still offer Medicaid, Minnesota Care, special needs plans, individual and family plans, as well as Medicare supplements.

UCare also pointed out that overall healthcare costs have risen significantly in the past two years, while government payment rates haven’t kept up with these increases. In 2024, UCare reported an operating loss of $504 million. To maintain sustainable operations and provide quality insurance, the organization indicated it would concentrate resources on the most impactful programs.

As a result of coverage reductions, UCare plans to lay off approximately 144 employees, which is 9% of its workforce, marking the second round of layoffs this year. Earlier, 80,000 individuals in Minnesota had been impacted when UCare temporarily halted Medicaid coverage across 11 counties, including St. Louis County. Additionally, in May, the nonprofit let go of 80 employees and paused hiring while cutting back on open positions.

Medicare enrollment is available until December 7.