UCare to Drop Lawsuit Against State for Health Contracts

ST. PAUL, Minn. (AP) - A Minnesota health insurance company plans to drop its legal fight with the state to win back key contracts.

UCare sued the state this summer after losing a competitive bid for a contract to cover low-income residents on MinnesotaCare and Medical Assistance. The company argued the state cut it out arbitrarily and said it should be restored.

The Minneapolis company said in a statement Friday that it will file a motion to dismiss that lawsuit next week. UCare says it doesn't want to disrupt enrollment in new plans for 2016.

The decision comes after the state restored UCare's contract to cover residents in Olmsted County.

State officials have insisted their bidding was sound. They say it will save taxpayers $450 million.