Oregon's health insurance market is undergoing significant changes heading into 2027. Several major insurance companies are leaving portions of the market, while others are changing the types of businesses they will cover.
For Oregon employers, these changes could mean finding a new health insurance carrier, evaluating different plans, or simply paying closer attention to the options available at their next renewal.
Here is a high-level look at what is changing and what employers need to know.
Quick Summary:
- Providence Health Plan is transitioning out of most of its insurance business, including employer group/commercial health plans. Current coverage continues through 2026, although some existing large-group contracts may extend into 2027.
- Moda Health is leaving Oregon's ACA small-group medical insurance market, which generally covers businesses with 1–50 employees. Moda continues to offer solutions for larger employer groups.
- Health Net is also leaving Oregon's commercial group health insurance market, affecting both small and large employers. Existing group coverage is generally scheduled to end February 28, 2027.
- Several carriers remain in Oregon's employer health insurance market, including Kaiser Permanente, Regence BlueCross BlueShield of Oregon, PacificSource and UnitedHealthcare, although availability depends on employer size, location, plan type and other factors.
- Employers affected by these changes should begin reviewing alternatives early rather than waiting until their current coverage ends.
What Is Happening to Oregon's Group Health Insurance Market?
Oregon employers are facing a shrinking selection of insurance carriers in parts of the group health insurance market.
The changes come amid broader pressures on Oregon's health insurance market, including rising medical costs, declining enrollment in certain market segments, and other economic and regulatory pressures. Oregon's Division of Financial Regulation reported that small-group enrollment declined from approximately 142,000 people in 2025 to 134,000 in 2026.
For 2027, the state approved an average 15.5% rate increase in the small-group market.
At the same time, several insurance companies have announced significant changes to their Oregon operations.
Providence Health Plan Is Transitioning Out of Employer Group Insurance
Providence Health Plan announced that it will transition out of most of its health insurance lines of business beginning in 2027, including its Employer Group/Commercial plans.
For small groups, current coverage will continue through 2026, with small-group plans ending at the end of the year.
The transition for some larger employer groups may look different. Providence has said it will not offer new commercial plans in 2027, although certain existing employer plans may continue into 2027 based on their contracts.
Employers currently using Providence should therefore review the specific termination or renewal information provided for their plan rather than assuming every Providence group plan ends on the same date.
Moda Health Is Leaving the Small-Group Market
Moda Health is making a more targeted change.
Moda is withdrawing from Oregon's ACA small-group medical insurance market. Small-group medical coverage is scheduled to end February 28, 2027. Oregon generally defines the small-group market as employers with 1–50 employees.
This means the change is not a complete withdrawal from Oregon group health insurance. Moda continues to offer health solutions for larger employer groups(businesses with 51 or more employees).
Moda has also indicated that group dental coverage is not affected by its small-group medical exit.
Health Net Is Leaving Oregon Group Health Insurance
Another major development involves Health Net.
Health Net announced that it will discontinue commercial group health plans in Oregon, including:
- Small-business group medical plans
- Large-group medical plans
- Association health plans
- Supplemental group dental and vision plans
Existing group coverage is generally expected to continue through February 28, 2027, although employers should review their specific notices and contracts for their applicable termination date. Health Net is no longer accepting new commercial group business in Oregon.
What Oregon Group Health Insurance Companies Are Staying?
The changes do not mean Oregon employers will be left without group health insurance options.
For example, Kaiser Permanente continues to offer Oregon small-group coverage for 2027, and Regence BlueCross BlueShield of Oregon continues to serve Oregon employer-sponsored plans.
PacificSource also remains an important option. While PacificSource is leaving Oregon's individual insurance market for 2027, the company continues to participate in the small-group market. This distinction is important because the individual-market exit does not mean PacificSource is leaving employer health insurance.
UnitedHealthcare also remains among the carriers participating in Oregon's small-group market.
Exactly which carriers and plans are available to a particular business can depend on factors such as employer size, employee locations, provider network requirements, and plan structure.
What Should Oregon Employers Do Now?
If your organization currently offers coverage through Providence, Moda, or Health Net, now is the time to start reviewing your options for 2027.
Even if your existing coverage will remain active for several more months, starting early provides more time to compare carriers, premiums, provider networks, and plan designs.
Employers should also pay close attention to their carrier's official notices. Coverage end dates are not necessarily identical across every carrier or employer group.
This is also where working with an experienced benefits partner can make the transition significantly easier.
GNSA Can Help Oregon Employers Navigate Their Health Insurance Options
The changing Oregon insurance market makes it more important than ever for businesses to understand which carriers and plans are actually available to them.
Through the GNSA Insurance Partner Network, our benefits experts can research available carriers and help employers compare health insurance options based on their organization's needs. Our process includes identifying your needs, researching carrier options, presenting recommended plans, and assisting with enrollment and ongoing carrier communications.
Oregon employers can also explore our Oregon Group Health Insurance resources to learn more about available coverage and how GNSA can help.
If you're currently covered through an insurer that is leaving the market, or you're simply unsure how these changes affect your organization, you can Ask us a Benefits Question, and one of our insurance experts can help you understand your options.
Ready to begin comparing plans? Request an Oregon group health insurance quote to get started.
Frequently Asked Questions (FAQ)
Is Providence leaving Oregon's group health insurance market?
Yes. Providence Health Plan is transitioning out of most of its insurance business beginning in 2027, including Employer Group/Commercial plans. Small-group coverage ends at the end of 2026, while certain existing larger employer contracts may continue into 2027 depending on their terms.
Is Moda Health leaving Oregon?
Not entirely. Moda is leaving Oregon's ACA small-group medical market, generally covering employers with 1–50 employees. Moda continues to offer solutions for larger employer groups, and its small-group dental business is not affected by the medical-plan withdrawal.
Is Health Net leaving Oregon's group health insurance market?
Yes. Health Net is discontinuing its Oregon commercial group business, including small-group, large-group and association medical plans. Existing commercial group coverage is generally expected to end February 28, 2027.
What health insurance companies will still offer group coverage in Oregon?
Oregon employers will continue to have group health insurance options. Depending on employer size, location and other eligibility requirements, carriers can include Kaiser Permanente, Regence BlueCross BlueShield of Oregon, PacificSource and UnitedHealthcare.
What should I do if my company's health insurance carrier is leaving Oregon?
Start evaluating replacement coverage as early as possible. Review the termination notice from your existing carrier, determine exactly when your coverage ends, and compare alternative carriers, provider networks, premiums and plan designs. GNSA can help employers evaluate available options through our Oregon Group Health Insurance network or you can submit a benefits question for assistance.
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