Minnesota payer to sue state for cutting contracts

Minneapolis-based payer UCare plans to sue Lucinda Jesson, the commissioner of the Minnesota Department of Human Services, because it claims the state "arbitrarily" cut its contracts for 370,000 Minnesotans, according to the Minneapolis/St.Paul Business Journal.

According to the report, the Minnesota Department of Human Services declined to comment until it has reviewed the lawsuit.

In the lawsuit, UCare claims it was randomly cut from the Prepaid Medical Assistance Program and the Minnesota Care program. UCare was not among the top three insurers that won 2016 contracts in Minnesota's competitive bidding program for payers who manage public health plans. The top three were Eagan-based Blue Cross and Blue Shield of Minnesota, Bloomington-based HealthPartners and Minnetonka-based Medica, according to the report.

"This action is a last resort for us after we made every effort to seek reconsideration from the governor and the commissioner," UCare CEO Jim Eppel said, according to Minneapolis/St.Paul Business Journal. "We are not seeking to replace any health plans that have been selected in the RFP process, but to be added as an option to ensure that individuals and families can choose UCare in a competitive marketplace."


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