ST. PAUL, MN — UCare, a Minneapolis-based nonprofit health insurer that covers Medicaid and Medicare enrollees across Minnesota, has notified the state's Rapid Response Team that it will permanently lay off approximately 102 employees from its facility at 600 Stinson Blvd in Minneapolis, according to a federal WARN notice.
The filing states that some of UCare's state contracts, including its Medicaid support, are being acquired by Medica, ending UCare's role in those contracts on Oct. 1, 2026.
Layoffs are expected to begin Oct. 2 and continue through November.
The affected workforce includes remote employees and spans dozens of roles, from care coordinators and care managers to customer service representatives, quality improvement specialists and utilization review staff.
Employees are not represented by a union and have no bumping rights. Mee Yang, a State Rapid Response Team senior specialist, is leading the state's assessment of the layoffs.
The layoffs are the latest step in UCare's wind-down. Medica and UCare announced a definitive agreement on Nov. 17, 2025 for Medica to acquire certain UCare contracts and assets, after which UCare stopped accepting new contract applications.
A Ramsey County District Court order placed UCare into rehabilitation on Dec. 17, 2025, and a court-approved Rehabilitation Plan now governs how the insurer's outstanding claims are paid out over time.
UCare has pointed to low reimbursement rates from Minnesota's Medicaid program as the main driver of the financial losses that pushed it toward collapse.
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