Around 100,000 people in Marion and Polk counties will lose their health insurance by next year, when Providence plans to ax much of its insurance business. Providence Health Services is a not-for-profit healthcare system that provides insurance to over 421,000 Oregonians who use it to see the d octor, get their shots and pay for medications. The company announced on May 20 it would end most of its insurance business through Providence Health Plan starting in 2027.  It has about 99,700 members in Marion and around 4,900 in Polk.  Those residents, and local employers, will have to find new health insurance come next year. If people can’t get another insurance by then, they will be left paying higher out-of-pocket costs to get care.  Providence CEO Erik Wexler told employees the decision – which came just two months after an attempt to sell the health plan – was driven by rising costs, regulatory burdens and consolidation by national insurers, according to a letter shared by spokeswoman Jean Marks. Providence hospitals and clinics aren’t included in the scale back.  Providence Health Plan is Oregon’s third largest insurer, covering individuals, families, companies, state employees and Medicare Advantage members. It has about 2,300 Medicare Advantage members in Marion and Polk, Marks said. The company is trying to maintain those plans via partnership with a national insurer.  Some employers could lose coverage sooner if their contracts with Providence expire before the year’s end. Marks could not say how many private employer contracts it had in the counties.  From lawyers to highway maintenance workers, about 144,000 public employees in Oregon get Providence insurance through their jobs, according to Oregon Health Authority spokeswoman Franny White. The state also offers plans through Kaiser Permanente and Moda Health, but the majority of its workers – 65% – are covered through Providence. In Marion County, some 5,900 state employees, retirees and dependents use Providence insurance, White said in an email. Providence’s announcement has left those employees uncertain about their options and whether they will be able to keep their current providers. Oregon’s biggest labor union, Service Employees International Union Local 503, represents some 30,000 employees participating in the state insurance, including those at Salem’s Oregon Department of Human Services office, the Oregon State Hospital and Oregon Department of Transportation. About 60% of those 30,000 people use Providence. “There’s been some anxiety and frustration. Members are anxious about the possibility of transitioning to another carrier as anybody would be anytime that we have to switch plans,” said union spokeswoman Pati Urias.  Urias said people’s main concern is whether they will be able to keep their doctor when they switch to another plan.  “People want continuity in coverage,” she said. “If they have to go in for frequent visits, maybe they’re on particular blood pressure medication, … whatever plan they switch to, they want to be able to see a doctor who has familiarity with their history.” All three Marion County hospitals, including Salem Hospital, take Providence patients, as does Salem Clinic.  The abrupt announcement left even Salem’s biggest healthcare provider without clear answers.  “Salem Health has not received information from Providence Health Plan regarding what plans will be impacted in our region. The extent of the information Salem Health has from Providence Health Plan is included in Providence’s May 20th press release,” said spokeswoman Megan Allison. “Until more details are known, it is premature to answer questions regarding any potential impacts.” Salem Health sees about 2,700 Providence members each month.  Salem Clinic, an independent health system with several clinics in Salem and Keizer, doesn’t expect to lose patients as a result of the insurance program change, said CEO Ryan Farwell. “Because Providence handled mostly small business and state employees, our assumption is that all of those will continue to be insured but just with another insurer,” Farwell said in an email. “The pain will come from the state and other employers in finding affordable alternatives and therefore some benefits might be reduced, or prices will go up to allow employers to continue to provide these benefits to their employees.” For now, state employees with Providence will keep their coverage, providers and prescription benefits through the end of the year, White said. The state is currently negotiating contracts with three insurers for next year, including Moda, Kaiser and Capital Rx.  “Members will receive a variety of communications in the coming months to help them understand their future coverage options and assist them in finding new coverage if needed,” Marks said. “If a member is covered by their employer, the employer will be the best source for information related to future health insurance coverage.” Providence’s exit is the latest change that shrinks healthcare and insurance options for patients in Salem.  Some 30,000 Marion and Polk residents with Regence BlueCross BlueShield insurance, Oregon’s largest insurer, lost in-network access to Salem’s only hospital in 2025. About a third of them used Salem Health regularly.  During Thanksgiving week later that year, over 140,000 low-income Medicaid patients were warned by PacificSource, which manages the insurance locally, that they could lose in-network coverage at Salem Hospital. The hospital and insurer eventually came to an 11th-hour agreement in late December.  After PacificSource and Salem Clinic could not reach an agreement, 10,000 low-income people using Medicaid lost access to most services in its facilities at the start of this year. Have a news tip? Contact reporter Hailey Cook: [email protected] . “My go-to source every morning for accurate, local news.” Make Salem Reporter your trusted source for independent local reporting – every day. Stay informed and connected. Subscribe today. The post Over 100,000 Marion, Polk residents to lose Providence health insurance by next year  appeared first on Salem Reporter. ...read more read less