PacificSource exited Lane County's Oregon Health Plan on February 1, 2026, transferring approximately 96,000 Medicaid members to Trillium Community Health Plan — which effectively quadrupled overnight from 30,000 to 126,000 members. Lane County now has a single CCO, creating a monopoly that eliminates member choice.

The financial collapse was dramatic. PacificSource reported a $68.5 million loss on its Lane County Medicaid book — more than twice the losses of any other CCO in the state. Even after OHA set the 2026 Lane County rate at $582.05 PMPM (13% above prior year), PacificSource's projected shortfall remained the largest in the system. The insurer filed its intent to withdraw on September 18, 2025, and subsequently laid off 325-381 employees — roughly one-fifth of its 1,800-person workforce — across Springfield, Salem, Portland, Medford, and Bend.

For Lane County healthcare providers, the transition carries real operational risk. Trillium's network contracts, formularies, prior authorization requirements, and care management protocols differ from PacificSource's. Transition-of-care protections last 30, 60, or 90 days depending on patient acuity — meaning complex patients in active treatment face potential disruption by spring. Dental practices and behavioral health providers that built referral relationships through PacificSource's care coordination model must now navigate Trillium's systems. The broader signal is unmistakable: CCO financial viability in Oregon's most populated counties is not guaranteed, and the 10.2% rate increase may not be enough to prevent further exits.

Watch for OHA's evaluation of Trillium's network adequacy in the coming months and any signals about CCO procurement for the next contract cycle starting 2027.