PacificSource Completes $46M Acquisition of Clear One
Springfield, OR-based PacificSource Health Plans has completed its previously announced $46 million acquisition of Clear One Health Plans, Inc., which becomes a wholly owned subsidiary.
Included in the acquisition are Bend, OR-based Clear One subsidiaries Central Oregon Individual Health Solutions, Inc., Trusteed Plans Service Corp., Clear Choice Properties, LLC, and Clear One Life and Health, LLC.
The acquisition, announced in December, was approved by state and federal agencies, including the Oregon Insurance Division, and the Centers for Medicare & Medicaid Services. Clear One shareholders approved the deal April 23, and will receive $26 per share in cash.
"Serving Medicare and Medicaid beneficiaries has been a longtime goal for PacificSource," said Ken Provencher, president/CEO of PacificSource, an independent, not-for-profit community health plan. "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." Provencher replaces Clear One President/CEO Patricia Gibford, who retired Friday.
PacificSource employs 590 people, serves more than 259,000 policy holders, and has 6,200 employer clients throughout the Northwest. Clear One has 97 employees and covers 47,000 people, including 28,000 Medicaid enrollees, and 10,000 Medicare enrollees. The TPSC subsidiary has an additional 62 employees and covers 55,000 lives.
Staff reductions will be minimal, PacificSource said, with more than 90% of Clear One staff 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."
PacificSource will consolidate its Bend office, using the existing Clear One office as its Central Oregon location. A Clear One sales office in Kalispell, MT, and the TPSC office in Tacoma, WA, will remain open.
PacificSource named Peter McGarry, the insurer’s acting senior vice president of government programs, to oversee its new Medicare and Medicaid lines. McGarry is now vice president of provider network for PacificSource, and will continue in that role as he oversees the Clear One in the interim.