The Brief UCare announced it will shut down in 2026 after 40 years of operating as a Health Maintenance Organization (HMO). Medica will take over UCare’s remaining health plans that were already reduced after the nonprofit reported losses of more than $500 million. UCare announced the permanent layoff of 102 workers on Wednesday as the health insurer plans to wind down operations in Minnesota by the end of 2026. Dig deeper:In December 2025, UCare announced that it would lay off roughly 250 of its workers in January 2026, with the future of another 450 employees still uncertain as benefits through UCare transition to Medica, a nonprofit health insurer based in Minnetonka. Nearly 300,000 people enrolled in Medicaid and MNsure health plans from UCare will maintain coverage throughout 2026, with the health plans being run by Medica.