Local Medicaid Insurer PacificSource Exits Lane County OHP Market

PacificSource Health Plans ceased serving Oregon Health Plan members in Lane County as of Jan. 1, 2026, a move that directly affects more than 90,000 people in the service area. The company declined to renew its Lane County Coordinated Care Organization contract after failing to reach agreement with the Oregon Health Authority on reimbursement rates for the 2026 contract period, prompting state-led efforts to prevent gaps in care.

Under Oregon’s Medicaid structure, Coordinated Care Organizations manage benefits, provider networks, and care coordination for OHP members. With PacificSource’s exit, the Oregon Health Authority has begun coordinating with other CCOs, most notably Trillium Community Health Plan, to identify options for reassignment and to ensure continuity of covered services. Local officials have emphasized that existing benefits and access should continue during the transition while the state arranges reassignment or new CCO support.

For Lane County residents enrolled with PacificSource through OHP, the immediate priorities are continuity of prescription and specialty care, preservation of existing authorizations, and uninterrupted access to primary and emergency services. Local hospitals have confirmed they will continue to provide emergency care regardless of changes to CCO arrangements. Non-emergency care such as elective procedures or specialty referrals could be affected if those services require authorization under a new CCO or if a patient’s current provider is not included in a reassigned network.

The reassignment process aims to move members into other CCOs so coverage and benefits remain intact, but practical transitions can involve changes in provider networks, prior authorization rules, and pharmacy arrangements. Members should watch for official notices from the Oregon Health Authority and from PacificSource detailing next steps, and contact the state agency or their current plan for help with questions about prescriptions, scheduled care, or provider networks.

Beyond immediate logistics, the departure highlights how negotiations over reimbursement levels influence the availability of managed Medicaid plans at the local level. Changes to contract terms between insurers and the state can ripple through provider networks and community health services, affecting both access to care and financial stability for local clinics and hospitals.

As the OHA works to reassign members and minimize disruption, local health leaders and providers will be monitoring impacts on continuity of care. Residents should stay alert for communications about their enrollment and be prepared to verify coverage and provider participation before seeking non-urgent services.