Health insurer drops lawsuit against Minnesota


Health insurance company U Care is dropping a lawsuit it filed against Minnesota this summer.

U Care sued over the competitive bidding process the state used in awarding contracts to cover Minnesotans enrolled in public health insurance programs. The company argued it was unfairly excluded from providing insurance through MinnesotaCare and Medical Assistance.

The Star Tribune reports U Care said in a statement Friday that it still has concerns about that process but added: “We have decided to withdraw from litigation in the interests of allowing MinnesotaCare and [Medical Assistance] enrollees to go forward with their 2016 health plan selections without further delays or confusion.”

350,000 people changing insurance carriers

Under the bidding process used for the first time this year, Blue Cross Blue Shield won the contracts for the bulk of Minnesota's counties, with Health Partners and Medica claiming the rest, the Business Journal reports.

U Care did salvage the public insurance business in one county – Olmsted – which was restored to it on appeal, the Associated Press says.

But another 350,000 people who are insured through U Care this year must switch to other carriers for 2016. The Star Tribune says the loss of that much business makes job cuts likely at U Care.

State officials maintain the bidding process they used is fair and saved taxpayers money.

That position was reiterated Friday in a statement from Department of Human Services Commissioner Lucinda Jesson, who said “We appreciate that UCare recognized it’s time to move forward,” the Star Tribune reports.

Next Up

Facebook - Tuey Wilson Comic Stunt Juggler - broken wrists

MN juggler Tuey Wilson breaks both wrists in unfortunate accident

Wilson is a staple of the Renaissance Festival and holds a Guinness World Record.

Pixabay - laptop computer dark screen

Charges: Woodbury man had hundreds of child porn images on devices

He was arrested and charged with six felonies this week.

Dede Westbrook

Report: Dede Westbrook working out for Vikings

Westbrook could sign with the team if the workout goes well.

Flickr - State Patrol Minnesota trooper - uniform crop

State Patrol squad sustains major damage in crash at I-35 ramp in Sandstone

The trooper and other driver involved in the wreck were both injured.

school lunch

Free meals for kids available at 2,500 sites in Minnesota this summer

The state has teamed up with the USDA to provide healthy foods for all children in Minnesota.

695 grand avenue

St. Paul planners gives OK to 5-story development at Dixie's on Grand

The property would include four commercial spaces, but not Dixie's on Grand.

Screen Shot 2021-07-23 at 12.22.13 PM

Family identifies man who died at Menards in Golden Valley

Three people were "temporarily detained" at the Menards on Thursday, police say.