PacificSource is in retreat. This is revealed not just in the layoffs—including a new large round announced in recent days—but in the Oregon-based health insurance company’s broad partial withdrawal from the state Medicaid system, including in the Portland area.

In recent weeks, PacificSource, which is owned in large part by Legacy Health, has announced it would no longer serve the Oregon Health Plan in certain sectors.

Take Portland metro. Most of the 400,000-plus members of Health Share of Oregon, the largest coordinated care organization in the region, get their Oregon Health Plan-based insurance through other entities, like CareOregon.

But some 20,000 of them are members of the Legacy-PacificSource plan and, with PacificSource pulling out, will likely have to be transferred to a new

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