UCare Discontinues Medigap Policies: Impact on Minnesota Seniors

UCare, a Minnesota-based health insurer, recently announced its decision to terminate its Medigap policies for policyholders with traditional Medicare, impacting over 2,000 individuals. This change, effective next month, may lead to coverage gaps for affected seniors. Without securing alternative coverage, these individuals could face increased out-of-pocket expenses.

This decision leaves approximately 2,500 consumers needing to cover 20% of healthcare costs themselves unless they quickly transition to a new plan. There's still a chance for these individuals to obtain new coverage before January, but prompt action is necessary to mitigate potential financial impacts.

Impact on the Medicare Advantage Market

UCare's decision to exit the Medicare Advantage market affects over 150,000 beneficiaries in Minnesota, who must seek new insurance options. Although initial communications indicated a transition to a different insurer by 2026, around 2,340 policyholders are now directly impacted by the Medigap coverage discontinuation.

The Minnesota Department of Commerce aims to facilitate enrollment in new plans by March 2026 by collaborating with UCare and other insurance carriers. Beneficiaries are encouraged to report concerns to assist with a smoother transition.

Navigating the Transition

Industry experts underscore the importance of retaining documentation proving loss of coverage for those with guaranteed issue rights. This documentation ensures eligibility for new Medigap policies post-application. Given the complexity, consulting knowledgeable insurance advisors is advised for understanding options and the guaranteed issue process.

Within the broader industry context, economic pressures compel insurers to reassess their Medicare-related offerings, with some exiting the market entirely. UCare's situation signals ongoing challenges for the Medicare and Medigap markets, requiring attention from industry stakeholders and impacted individuals.