Friday, April 24, 2009


Colleen Thompson, Marketing Manager
(541) 684-5453,  

PacificSource Health Plans Announces Agreement to
Offer Coverage to Preferred Health Plan’s Membership

Eugene, Ore. – PacificSource Health Plans announced today that it has agreed to offer coverage to the membership of Preferred Health Plan, a health insurer in Klamath Falls, Oregon that is leaving the insurance market due to financial problems.

Effective June 1, 2009, all of PHP’s members will have the opportunity to continue their insurance coverage through PacificSource Health Plans. The Eugene-based insurer is taking steps to ensure that none of PHP’s members lose their health insurance coverage as a result of PHP’s exit from the business. PacificSource will credit each PHP member’s deductible and out-of-pocket expenses toward their new policy. It will also send a transition team of employees to Klamath Falls to work directly with PHP’s members, employer clients, and providers during the transition.

“We’re committed to doing everything we can to help PHP’s members retain their coverage,” said Ken Provencher, president and chief executive officer of PacificSource Health Plans. “It’s our hope that nobody will become uninsured as a result of this situation. We will have local representatives there to work with these members and help them maintain their healthcare as seamlessly as possible. As we do so, we will use this as an opportunity to develop a stronger presence in the Klamath Falls area and become a key member of the local healthcare community.”

Preferred Health Plan (PHP) is a for-profit, stockholder-owned insurance plan whose primary investor is Sky Lakes Medical Center in Klamath Falls. PHP currently covers approximately 3,600 people in Klamath and Lake Counties through its group and individual health plans. In late March PHP announced that it would exit the Oregon market due to financial problems. The insurer has been working with the Oregon Department of Consumer and Business Services since that time to develop an exit strategy that will allow its current policyholders to continue their coverage. It stopped soliciting new business at that time.

About PacificSource Health Plans

Founded in 1933, PacificSource is based in Eugene, Oregon, with local offices in Portland, Bend, Medford, and Boise, Idaho. The independent, not-for-profit company provides medical and dental benefits to more than 4,000 employers and covers more than 137,000 people with its group and individual health insurance plans. It also provides self-funded employee benefit plans, flexible spending accounts, HRAs, and COBRA administration services through its subsidiaries, Manley Services and Select Benefit Administrators. Together, PacificSource and its subsidiaries employ approximately 400 people. For more information, visit or call (800) 624-6052.

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Last updated 9/21/2015