PacificSource Layoffs Hit Four Oregon Cities as Insurer Pulls Back From Marketplace Plans

PacificSource, which recently left the Affordable Care Act marketplace in Oregon, is laying off 97 employees in Portland, Salem, Bend, and Springfield, effective at the end of July.

The nonprofit insurer provides coverage for 500,000 members affiliated with the Affordable Care Act via Medicare, Medicaid, and employer-sponsored insurance in Oregon, Washington, Idaho, and Montana.

The Insurer Withdrew From Lane County as a CCO at the Beginning of 2026

PacificSource withdrew from Lane County as a coordinated care organization (CCO) at the beginning of the year, where about 96,000 members had to transfer to Trillium Community Health Plan. PacificSource managed Medicaid coverage for the Oregon Health Plan members.

Profitability challenges and weaker capitalization have placed the insurer under financial stress, and the latest cutbacks coincide with Oregon’s shrinking Affordable Care Act marketplace.

This year, the state has experienced a 15% decline in private marketplace plans, with 21,000 fewer people enrolled compared to last year.

Private marketplace plans serve small business owners and self-employed workers. Since the expiration of pandemic-era federal subsidies, premium increases have forced many Oregonians to either choose cheaper options or forego health coverage completely.

The withdrawal of PacificSource from the private marketplace is a nationwide trend among healthcare insurers.

Providence Health Plan is ending its insurance products to individuals, families, and employers at the beginning of 2027.

Currently, more than 420,000 Oregonians are members of Providence, and its decision to withdraw from the private marketplace will force hundreds of thousands of people to seek coverage elsewhere.