Definitive Agreement Signed for Medica to Acquire Certain UCare Contracts and Assets. Transaction will Expand High-Quality, Affordable Health Care Coverage for more than 300,000 Minnesotans

MINNETONKA, Minn.--(BUSINESS WIRE)--

Medica and UCare, both Minnesota-based nonprofit health plans, today announced a definitive agreement for Medica, with more than 1.4 million members across nine states, to acquire certain contracts and assets of UCare, a health plan that for 40 years has provided health coverage and services to Minnesotans.

“As a nonprofit, community-focused health plan, Medica has a long history of serving members in Minnesota, guided by our mission and trusted relationships with providers, customers and members,” said Lisa Erickson, CEO of Medica. “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.”

Under the terms of the agreement, subject to customary conditions to closing including the receipt of required regulatory approvals, individuals enrolled in UCare’s 2026 Medicaid and Individual and Family Plans will continue to receive services without interruption. Medica and UCare are committed to providing a seamless experience for members and will work with the appropriate state agencies and the Attorney General’s Office to file the needed documentation.

The announcement follows UCare’s decision earlier this year to terminate its Medicare Advantage contracts. In alignment with its Board of Directors, UCare began exploring opportunities to transition its members to a community-focused, nonprofit organization with aligned missions.

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

Erickson will continue as Medica’s President and CEO.

“Hilary’s partnership and support as we prepare for this transition demonstrates her commitment to UCare, their members and the community,” continued Erickson. 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.”

The transaction is anticipated to close in the first quarter of 2026.

Individuals enrolled in a UCare plan for calendar year 2025 will continue to receive coverage without interruption. For the 2026 plan year, eligible individuals may continue to enroll in health coverage offered by either Medica or UCare. Providers or members with questions are encouraged to visit Medica.com or UCare.org for more information.

UCare will fulfill all contractual and regulatory obligations until that work is transitioned to Medica.

Goldman Sachs is serving as financial advisor to Medica, and Sidley Austin LLP and Nilan Johnson Lewis PA are serving as its legal counsel. Stinson LLP and Foley & Lardner LLP are serving as UCare's legal counsel.

About Medica: Medica (www.medica.com) is a mission-driven, member-focused non-profit health plan headquartered in Minnesota. The company serves communities in the heart of America by providing health care coverage and related services in the employer, individual, Medicaid and Medicare markets. It operates in Minnesota, Iowa, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota, Wisconsin and Wyoming.

Medica’s mission to better your life with care in the moments that matter is a testament to member-focused commitment to high-quality, affordable health care.

About UCare: UCare is an independent, nonprofit health plan providing health care and administrative services to more than 300,000 members throughout Minnesota and parts of western Wisconsin. UCare partners with health care providers, counties and community organizations to create and deliver Medicare, Medicaid and Individual & Family health plans.

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Source: Medica