Providence Health Plan to contract with California insurance administrator

Providence Health & Services’ insurance arm will outsource administration of health plans for self-funded employers to a California-based firm.

Providence Health Plan, a health insurance provider headquartered in Eugene, announced Wednesday that it has hired San Francisco-based Collective Health as its third-party administrator for employers that pay their medical claims and fees directly.

The change will affect those companies’ roughly 135,000 Oregon employees, who can expect to see their employer’s plan offerings under the new name “Providence Health Plan Powered by Collective Health” starting next year.

It’s unclear whether the shift would result in job losses at Providence Health Plan, which also insures other types of customers beyond those affected by this arrangement. A spokesperson said that there are “no current layoffs” but did not address the possibility of cuts once the company starts using Collective Health’s services.

Don Antonucci, president and CEO of Providence Health Plan, said the company will use Collective Health’s technology to better serve self-insured employers who cover their workers through Providence Health Plan.

Antonucci said employers with self-funded health plans will be able to customize plans for their workers, and that the Collective platform will make plan data more easily accessible.

“In health care, there’s not always the greatest transparency,” he said. “We hear a lot from employers who want transparency with data analytics, like what’s the utilization of benefits, what the costs and where spending is going with the health plan.”

Their employees will see Collective Health’s platform rolled out as a“one-stop-shop” for tracking their health benefits, finding available providers in their network, connecting with clinicians and managing their plan, he said.

— Kristine de Leon covers consumer health, retail, small business and data enterprise stories. Reach her at [email protected].

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