UnitedHealth to cut MN Medicare Advantage counties from 72 to 27 in 2026; UCare exits; Blue Cross maintains statewide coverage via MA/Cost
UnitedHealth will sharply scale back Medicare Advantage in Minnesota in 2026 — cutting its footprint from 72 counties to 27 as part of a national exit from 109 counties that may affect up to 180,000 members — while Blue Cross and Blue Shield of Minnesota will continue to offer Medicare options in all 87 counties through MA plans in 66 counties and Medicare Cost plans in the remaining 21; UCare is exiting Medicare Advantage entirely. Affected beneficiaries may revert to original Medicare A/B and lose MA benefits such as prescription drug coverage, but options include guaranteed-issue Medigap for those whose MA plans are terminated and standalone drug plans with premiums cited roughly $0 to $101–$117; UCare’s abrupt, court‑ordered wind‑down after large losses has left about 2,500 Medigap members scrambling to secure replacement coverage on short notice.
📌 Key Facts
- UnitedHealth will sharply reduce its Minnesota Medicare Advantage (MA) footprint in 2026, cutting from 72 counties to 27 and affecting about 20% of its Minnesota MA subscribers.
- Nationwide, UnitedHealth will stop offering MA in 109 counties in 2026, a move that could affect up to 180,000 members across the U.S.
- UCare will exit Medicare Advantage entirely in 2026; Minnesota regulators (MDH) concluded UCare’s financial condition was hazardous to the public and petitioned a court to place the company into receivership.
- UCare’s financial trajectory: after a record surplus in 2022, the company lost roughly $500 million by the end of 2024 and told regulators in August 2025 that, without an acquisition, it would be unable to pay debts after the New Year.
- About 2,500 UCare Medicare Supplement (Medigap) members were told they must find new coverage before Jan. 1, 2026, despite earlier assurances they would be unaffected by UCare’s wind‑down and the Medica acquisition.
- Blue Cross and Blue Shield of Minnesota will continue to provide Medicare products statewide in 2026 by offering MA plans in 66 counties and Medicare Cost plans in the remaining 21 counties, ensuring Blue Cross availability in all 87 Minnesota counties.
- Regulatory and operational disruption has left some members with very little time to secure replacement coverage: members reported coverage end dates only a few business days over the holidays, some did not receive formal termination letters needed to enroll elsewhere until recently, and transition processes have experienced breakdowns.
- Beneficiaries whose MA plans are terminated generally revert to Original Medicare Parts A and B and lose MA-added benefits (including prescription drug coverage and supplemental cost‑sharing); guaranteed-issue access to Medigap is an important option for affected people, and standalone Part D premiums can vary widely (examples cited from $0 to roughly $101–$117).
- Other carriers (including HealthPartners and Aetna) have also announced Medicare changes for 2026, adding to the shifting MA landscape in Minnesota.
📊 Relevant Data
UCare reported an operating loss of $504 million in 2024, primarily due to rising costs in its Medicare Advantage and Medicaid businesses, including specialty pharmacy medication expenses.
Amid financial losses, UCare scales back Medicaid service area — Becker's Payer Review
From 2019 to 2023, retail prescription drug spending in Minnesota increased considerably, driven by consistently and substantially increasing prices while utilization remained stable.
Health Care Spending, Prices, and Utilization in Minnesota — Minnesota Department of Health
Payments from the government to Medicare Advantage plans are expected to increase on average by 5.06% from 2025 to 2026.
CMS Finalizes 2026 Payment Policy Updates for Medicare Advantage and Part D Programs — Centers for Medicare & Medicaid Services
Black and Hispanic Medicare beneficiaries were less likely to receive annual wellness visits, influenza vaccines, and pneumococcal vaccines compared to White beneficiaries in 2022.
Racial and Ethnic Disparities in Preventive and Chronic Disease Care for Medicare Advantage Beneficiaries — Journal of General Internal Medicine
In Minnesota, Black and Indigenous/Native patients fell below the statewide Medicaid Health Care Program average in over 60% of health care quality measures in 2024.
MN Community Measurement Releases Latest Report on Health Care Disparities by Insurance Type — Minnesota Community Measurement
The higher Medicare Advantage enrollment rate for Black versus White beneficiaries is largely associated with differences in preferences, with Black beneficiaries comprising about 12% of the U.S. population but higher proportions in MA enrollment.
Understanding the Effect of Race on Medicare Advantage Enrollment — PMC
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- Clarifies that UCare’s broader financial condition was so dire that MDH determined its continued operation would be 'hazardous to the public or its insured' and petitioned a court to place the company into receivership.
- Reports that about 2,500 UCare Medicare Supplement members (Medigap, not Advantage) must find new coverage before Jan. 1, 2026, despite earlier assurances they would not be affected by UCare’s wind‑down and Medica acquisition.
- Details operational breakdown in the transition: members were told coverage would end with only a few business days over the holidays to secure replacement policies, and some did not receive formal termination letters needed to enroll with another carrier until this week.
- Adds financial trajectory specifics: after a record surplus in 2022, UCare lost roughly $500 million by the end of 2024, and told MDH/Commerce in August 2025 that without an acquisition it would be unable to pay debts after the New Year.
- UnitedHealth Group will stop offering Medicare Advantage in 109 U.S. counties in 2026, affecting up to 180,000 members nationwide.
- In Minnesota, UnitedHealth will reduce its MA footprint from 72 counties to 27 in 2026, affecting about 20% of its Minnesota MA subscribers.
- Blue Cross and Blue Shield of Minnesota will offer MA in 66 counties and Medicare Cost plans in the remaining 21, ensuring Blue Cross Medicare options in all 87 counties.
- UCare will drop Medicare Advantage entirely in 2026; HealthPartners and Aetna have also announced changes for Medicare customers.
- Explainer/Q&A from Legacy Health Insurance's Tim Jopp clarifying that beneficiaries who lose their Medicare Advantage plan will revert to original Medicare A/B and lose added benefits such as prescription drug coverage and supplemental cost-sharing.
- Guarantee-issue access into Medicare supplement (Medigap) plans for people whose Medicare Advantage plans are terminated, noted as an important option.
- Concrete example ranges for standalone prescription drug plan premiums mentioned (examples cited from $0 up to about $101–$117) to show cost variability for replacement coverage.
- Direct interview context and quotes from Tim Jopp providing step-by-step options and immediate next steps for affected beneficiaries.