PacificSource will lay off 97 Oregon employees, a company spokeswoman confirmed Friday, marking the latest round of cuts for the Springfield-based nonprofit insurer as it continues trying to rein in costs across the Pacific Northwest.
Company statement and local reaction
According to the Portland Business Journal, PacificSource described the move as an effort to “rightsize business in the state,” with positions being eliminated across multiple Oregon offices. The outlet reported that the decision followed internal reviews and comes on the heels of earlier job cuts last year.
Earlier rounds and state filings
The latest layoffs follow a roughly 300-job reduction announced in October 2025, when The Lund Report reported that PacificSource cited “significant financial pressures.” State WARN filings show an October notice that covered 265 Oregon positions and listed affected offices in Springfield, Portland, Salem, Bend and Medford.
What this means for Medicaid members
The job cuts land as PacificSource continues to pull back from some public health programs. The Oregon Health Authority says PacificSource will stop serving as a Coordinated Care Organization in Lane County, and that most Oregon Health Plan members there will shift to Trillium Community Health Plan, with transition-of-care protections in place, according to the Oregon Health Authority.
Why the insurer says it's cutting
Industry coverage has detailed how PacificSource is exiting the Affordable Care Act individual market and other lines of business as it tries to stabilize its finances. Healthcare Finance News reported that the insurer has pointed to rising health care costs and the end of enhanced federal subsidies as key reasons behind its recent retrenchment.
Local ripple effects
Local clinics and community groups have already reported feeling the strain as contracts shift and patient panels move. In 2025, providers warned that reimbursement uncertainty could force changes in services. Reporting by the Salem Reporter captured some of those concerns as PacificSource reduced parts of its Medicaid footprint.
What workers can expect
In previous layoff rounds, the company said affected workers would receive severance and career-transition support, and some employees were encouraged to seek other roles within the organization, according to The Lund Report. Local officials and health leaders say they are watching closely to see how this latest cutback will affect behavioral health capacity and overall access to care in smaller Oregon communities.
