A Ramsey County judge rejected the lawsuit that Medica filed against the Minnesota Department of Human Services related to the state's public health insurance programs, the (Minnesota) Star Tribune reported.

In 2016, Medica said it would not renew its contract to serve as a managed care organization in the state's health insurance programs because of low payment rates. The department then found other health maintenance organizations to cover Medica's enrollees, offering them higher payments through a transition factor. Medica sued the department for failing to comply with state procurement laws in hiring the other providers, which allegedly received better deals from the state.

Judge Robyn Millenacker disagreed with Medica's interpretation of state procurement laws, noting that it would not have allowed the state to get the best deal for taxpayers.

The department said the ruling proved the fairness of the state's bid process. Medica said it was "disappointed in the outcome" but is still interested in offering its services to Minnesotans.