PORTLAND, Ore. (May. 21, 2026) — Providence will largely exit the health insurance business beginning in 2027, ending most of its Individual and Family and Employer Group commercial health plans in a move that will affect hundreds of thousands of policyholders across Oregon and neighboring states.
The nonprofit health system announced Wednesday that its current health coverage plans will remain in place through the end of 2026, with no immediate changes for members, providers or employers. However, many customers will need to transition to another insurer starting in 2027.
Providence Health Plan currently covers about 421,000 people in Oregon — roughly 1 in 10 residents — along with an additional 19,000 members in Washington, California and Montana.
The withdrawal marks a significant shift in Oregon’s health insurance market, where Providence has long been one of the largest nonprofit insurers and a major provider of Affordable Care Act marketplace coverage. Providence plans have been offered in every Oregon county and have consistently enrolled more ACA marketplace consumers than most competing insurers, according to state data.
Providence said coverage and services for existing members will continue without interruption throughout 2026. Members can continue accessing care, filling prescriptions and seeing their current doctors during the transition period.
Beginning in 2027, customers enrolled in Providence Individual and Family plans or Employer Group commercial coverage will need to secure new insurance coverage.
“Nothing changes for members and customers in 2026,” the organization said in a statement announcing the transition. Providence added that it will provide resources and guidance to help members, employers and brokers prepare for coverage changes next year.
Providence officials said the organization is actively negotiating a potential agreement with another national insurance carrier that could allow current Medicare Advantage members to retain their coverage in 2027. Final details have not yet been announced.
The health system is also evaluating options to transfer management of its Medicaid business to another organization. The Medicaid program currently covers more than 58,000 low-income Oregonians. Providence said coverage for Medicaid members will continue through 2026 while transition plans are developed.
Providence emphasized that provider contracts, billing systems, claims processing and prior authorizations will continue operating normally through next year. The organization also said it would honor all contractual, legal and regulatory obligations throughout the transition.
The decision comes as Providence undergoes a broader financial restructuring effort aimed at restoring profitability after several difficult years for hospital systems nationwide. Providence operates more than 50 hospitals and approximately 1,000 clinics across the western United States.
The insurer’s departure also comes at a challenging time for Oregon’s health insurance market. State regulators have already warned that consumers purchasing ACA marketplace plans could face higher costs next year because of expiring federal subsidies, tariff impacts and expected declines in enrollment. Federal reductions to Medicaid funding are also expected to increase the number of uninsured residents in the state.
Providence said it plans to continue communicating with members, providers, employers and brokers as decisions about the transition are finalized later this year.
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