UCare Loses State Contracts

Big savings for the government due to the new managed care contracts will come at the expense of UCare. UCare is currently the largest HMO in Minnesota’s public health insurance programs. Recently, the results from the latest round of competitive bidding on HMO contracts were revealed by Gov. Mark Dayton. He reported that there should be nearly $450 million in saving in 2016 from the process, dismissing UCare as an option for most enrollees. The state will also be receiving $200 million in repayments from HMOs and the county based purchasing organizations. This is due to the fact that enrollees didn’t use as much coverage as previously thought. The praises for the bidding process have been that it’s good for taxpayers and enrollees. State officials evaluated bids from health plans not only in terms of the cost, but also in the quality of the plan. The previous sets of bids resulted in more enrollees shifting to UCare, which currently manages care for around 360,000 people. This fall, these enrollees will need to switch plans for the upcoming year.