Providence Health Plan, the insurance division of Providence Health & Services in Oregon, has laid off about 4% of its workforce, citing ongoing financial challenges across the broader insurance industry.
The Portland-based health insurer said it announced the job cuts last week, as first reported by KPTV. A company spokesperson said Providence Health Plan employs about 1,500 but declined to specify how many were laid off. (A 4% cut would be around 60 workers.)
“Like many health plans across the country, Providence Health Plan has faced strong financial headwinds and challenges throughout the past year,” the company said in a statement. “Reducing administrative costs is one way to ensure that we can continue to provide high-quality coverage to members and communities for generations to come.”
The layoffs follow warnings from Providence Health & Services CEO Erik Wexler, who recently told employees the health system is facing economic pressures and is taking steps to rein in costs, including limiting hiring and cutting back on spending.
Providence Health Plan offers commercial group plans, individual health coverage and third-party administrative services for self-funded employers that pay their medical claims and fees directly. It currently serves around 500,000 members, CEO Don Antonucci previously told The Oregonian/OregonLive.
Last month, Providence Health Plan announced it had hired a California-based startup to manage its third-party administrative services for self-funded employers. However, a spokesperson said last week’s layoffs were unrelated to that outsourcing decision.
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