PacificSource will stop offering Medicare Advantage plans in Clackamas County in 2027, the second insurer to pull out of the county's Medicare Advantage market.
The Springfield-based nonprofit insurer is also leaving Multnomah and Washington counties and exiting the Affordable Care Act marketplace in Oregon, Idaho and Montana after 2026, as first reported by The Oregonian on Oct. 21. About 60,000 members enrolled in affected plans will need to find new coverage for 2027.
The exit comes on top of Wellcare's departure from Clackamas County Medicare Advantage, leaving local seniors with fewer plan choices heading into 2027.
PacificSource, partly owned by Legacy Health, has reported covering about 500,000 people through Medicare, Medicaid, employer-sponsored and individual health plans across four states. The insurer has announced more than 600 layoffs since fall 2025 as it scales back.
"The reality is the healthcare system is unsustainable," Marcy Marshall, a PacificSource spokesperson, said in an email. "Costs continue to rise, access is inconsistent, and the experience often falls short of what people need and deserve."
The company filed a WARN Act notice with state labor officials on Oct. 20 announcing 134 permanent layoffs in Oregon by Dec. 31. The cuts affect employees in Portland, Salem, Bend and at PacificSource's Springfield headquarters. None of the affected workers are represented by a union.
Ratings agencies downgraded PacificSource's financial strength ratings in 2025, citing weaker finances and struggles to turn a profit, The Oregonian reported. The company has blamed rising health care costs and other industry pressures for its decision to scale back.
PacificSource is not alone. Providence Health Plan is ending all of its Medicare Advantage plans after 2026. An Oregonian/OregonLive analysis of federal Medicare data found more than 162,000 Oregonians are enrolled in Medicare Advantage plans that will be discontinued or no longer offered in their county in 2027. That is about 40% of the state's Medicare Advantage enrollees.
What Clackamas County residents should do
Medicare open enrollment runs through Dec. 7, with coverage changes taking effect Jan. 1. Members whose plans are ending can choose another Medicare Advantage plan or switch to Original Medicare.
Those who switch to Original Medicare get a special enrollment period from Dec. 8 through the end of February. They also get a limited window to buy Medigap supplemental policies regardless of their health, according to federal Medicare rules.
Gretchen Jacobson, vice president for Medicare at the Commonwealth Fund, told The Oregonian that people should check whether a new plan covers their medications and doctors before switching.
Clackamas County offers free one-on-one Medicare counseling through the Senior Health Insurance Benefits Assistance program, or SHIBA, by phone, in person and online. The state program reported higher-than-usual phone and email inquiries. Residents can also compare plans at Medicare.gov or call 1-800-MEDICARE.
