FOR IMMEDIATE RELEASE
Friday, May 21, 2010

Contact:

Colleen Thompson, Marketing Manager
(541) 684-5453, colleen.thompson@pacificsource.com  

PacificSource Health Plans Completes Acquisition of Clear One Health Plans, Inc.

  • All conditions have been met, including regulatory and shareholder approval
  • Purchase advances PacificSource’s strategy to expand government segments (Medicare and Medicaid)
  • Government product lines in Central Oregon, combined with PacificSource’s commercial business, creates opportunity to collaborate with providers across a broader spectrum of patients
  • Majority of Clear One staff retained to ensure effective customer service
  • Peter McGarry named acting senior vice president of government programs

PacificSource Health Plans announced today it has completed the acquisition of Clear One Health Plans, Inc. (OTCBB: CCHN). With the closing of the transaction, Clear One Health Plans, Inc. becomes a wholly owned subsidiary of PacificSource Health Plans. Included in the acquisition are Clear One Health Plans, Inc. subsidiaries Central Oregon Individual Health Solutions, Inc. (COIHS), Trusteed Plans Service Corporation (TPSC), Clear Choice Properties, LLC, and Clear One Life and Health, LLC.

Prior to the closing, PacificSource met requirements of or received regulatory approval from all necessary state and federal agencies, including the Oregon Insurance Division, the Centers for Medicare & Medicaid Services, and the Oregon Division of Medical Assistance Programs. Clear One shareholders approved the acquisition on April 23, 2010. Shareholders will receive $26.00 per share in cash.

“Serving Medicare and Medicaid beneficiaries has been a longtime goal for PacificSource,” said Ken Provencher, President and Chief Executive Officer of PacificSource. “The acquisition of Clear One, with their expertise in government programs, will allow us to be a true community health plan, providing health coverage to people throughout their lives. It will also help us to more effectively collaborate with healthcare providers to improve the quality of care.”

Staff reductions as a result of the acquisition are minimal, with over 90 percent of Clear One staff being retained. “Our first priority is to take care of our customers, and Clear One’s talented employee team is crucial in making that happen,” said Paul Wynkoop, vice president of human resources at PacificSource. “Clear One customers will continue to work with the experienced representatives they’ve come to know.”

Over the next few weeks, PacificSource will consolidate its Bend office space, using the existing Clear One office as its Central Oregon location. The Clear One sales office in Kalispell, MT and the TPSC office in Tacoma, WA will remain open as well.

PacificSource has named Peter McGarry as acting senior vice president of government programs to oversee its Medicare and Medicaid lines. McGarry is currently vice president of provider network for PacificSource, and will continue in that role as he oversees the Clear One operations on an interim basis. Ken Provencher replaces Clear One president and CEO Patricia Gibford, who retired on May 21, 2010.

About PacificSource Health Plans

PacificSource Health Plans is an independent, not-for-profit community health plan serving the Pacific Northwest. Founded in 1933, PacificSource is based in Eugene, Oregon, with local offices throughout Oregon and in Idaho and Montana. The PacificSource family of companies employs 590 people, serves more than 259,000 individuals, and has 6,200 employer clients throughout the Northwest.

With its acquisition of Clear One Health Plans in 2010, PacificSource has become a full-service health plan offering private insurance solutions and government-sponsored programs. PacificSource offers a wide array of group and individual health plans, group dental plans, and Medicare Advantage plans. It administers coverage for both the Oregon Healthy KidsConnect program and the Oregon Health Plan. PacificSource also provides self-funded employee benefit plans, flexible spending accounts, HRAs, and COBRA administration services under the PacificSource Administrators, Manley Services, and Trusteed Plans Service Corporation names. For more information, visit PacificSource.com or call (800) 624-6052.

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Last updated 9/21/2015