PacificSource will cut 134 Oregon jobs on December 31 as its withdrawal from major insurance markets reaches offices in Springfield, Salem, Portland and Bend, bringing the number of positions covered by two Oregon layoff notices this year to 231.
The Springfield-based insurer is eliminating the nonunion positions as it leaves the individual insurance business and withdraws from Montana’s commercial insurance market. Oregon recorded the latest workforce reduction October 20, following an earlier notice covering 97 Oregon jobs scheduled for elimination July 31.
The year-end cuts carry the company’s retreat from insurance markets into four Oregon employment centers. PacificSource has tied the reductions to the smaller operation it will maintain after ending coverage sold directly to individuals and families and leaving Montana’s individual, family and employer markets.
PacificSource will continue serving members in Oregon and Idaho. Its remaining business will operate alongside the work required to close out departing insurance products, including processing claims, fulfilling contracts and assisting members whose coverage is ending.
The company’s July coverage update committed to honoring existing contracts through their applicable coverage periods and notifying affected members before their plans end. PacificSource also said it would maintain claims-processing systems and support beyond 2027 to meet outstanding obligations.
For Oregon households buying their own health insurance, the company’s departure coincides with another carrier’s exit. Providence will also leave the state’s individual market at the end of 2026. Neither insurer submitted individual-market rate filings for 2027, removing both companies from the coming year’s selection of carriers.
Moda, BridgeSpan and Regence were identified by state regulators as statewide individual-market insurers for 2027. Kaiser will offer coverage in 11 counties. The statewide offerings provide at least three carrier choices in every county, including Jackson and Josephine, with benefits, provider networks and plan availability varying by product and location.
Southern Oregon residents with affected PacificSource individual policies face a change in insurers as those contracts expire. Selecting replacement coverage will also require checking whether physicians, hospitals and prescription medications remain covered under the new plan.
The carrier departures follow a decline in the number of Oregonians enrolled in individual insurance. State figures put enrollment at approximately 140,000 in 2026, down from roughly 161,000 in 2025. Over the same period, enrollment in small-group insurance fell from approximately 142,000 to 134,000.
Oregon insurance regulators identified the expiration of enhanced federal Affordable Care Act subsidies as a factor pushing some residents out of the individual market. Their review of proposed 2027 rates also identified inflation, higher healthcare expenses and federal policy uncertainty as pressures on insurance costs and participation.
PacificSource has cited growing pressures across the healthcare industry in explaining its withdrawal decisions. Its public coverage update did not assign specific dollar amounts to the factors driving the restructuring or identify projected savings from the latest job cuts.
The commercial-market departures follow an earlier contraction in the company’s Medicaid operations. PacificSource Community Solutions stopped serving as the Oregon Health Plan coordinated care organization in Lane County in early 2026, transferring affected members to Trillium through a transition coordinated with the Oregon Health Authority.
Most subsequent services shifted to Trillium beginning February 1. PacificSource retained responsibility for resolving claims and other obligations associated with care provided during its coverage period.
That transition removed a separate line of Lane County business before the company’s year-end commercial withdrawals. The latest layoffs extend the staffing reductions as PacificSource adjusts its operations to the markets and members it will continue serving.
Oregon’s workforce system provides employment and training assistance for workers affected by layoffs. The October notice places the December reductions more than two months ahead of their scheduled effective date. Federal law generally requires covered employers to give at least 60 days of notice before qualifying mass layoffs, subject to applicable thresholds and exceptions.
For employees at the four affected Oregon offices, the latest restructuring sets December 31 as the end of their jobs. For members leaving PacificSource’s individual plans, the same year-end transition brings the task of securing replacement insurance as the company completes its withdrawal.