PacificSource will lay off 134 workers across Oregon by Dec. 31, including employees at its Salem office. The Springfield-based health insurer is shrinking its workforce as it exits the individual coverage market.
The not-for-profit insurer filed a WARN notice with the Oregon Employment Department, KGW first reported Oct. 20. The cuts will hit six locations statewide, with most of the losses concentrated in Bend, Portland, Salem and Springfield. One employee each will lose their job at the Hood River and Medford offices.
PacificSource has not disclosed how many of the 134 positions will be eliminated at each location. None of the affected workers are union members.
The Dec. 31 layoff date lines up with the end of PacificSource's individual health plans. Coverage for those members expires Jan. 1, 2027.
Third round since September 2025
This is the company's third round of cuts since September 2025, when it eliminated 56 positions. Another 265 jobs followed in October 2025, according to KGW. In May, The Oregonian reported that PacificSource filed a separate WARN notice for 97 more layoffs at its Portland, Salem, Bend and Springfield offices, effective by July 31.
PacificSource's website lists more than 1,500 employees, though KGW noted it is unclear whether that figure accounts for recent cuts.
In a statement, the company said it is reducing positions to match restructured business units and will offer severance packages to qualifying workers. PacificSource said rising healthcare costs and inconsistent access are undermining its ability to deliver reliable coverage to its remaining members.
What it means for Salem
As we reported Oct. 19, PacificSource and Providence Health Plan are both leaving Oregon's individual market. That leaves Marion and Polk county residents with three individual-market carriers for 2027: BridgeSpan Health Company, Kaiser Foundation Health Plan of the Northwest and Regence BlueCross BlueShield of Oregon.
Roughly 60,000 PacificSource members enrolled in affected plans will need to find new coverage, Thompson, a PacificSource spokesperson, told The Oregonian. The state's Division of Financial Regulation approved a weighted average rate increase of 21.6% for Oregon's individual market before subsidies.
PacificSource will continue serving members in Idaho and Oregon through employer-sponsored, Medicare and Medicaid plans, according to the company's coverage update page.
Open enrollment for 2027 health coverage runs from Nov. 1 through Jan. 15, 2027. The Oregon Health Authority's Explore Health Plan Guide at ExploreHealthOR.gov lets residents compare plans by cost, benefits and provider networks before selecting coverage.
