Cover Oregon, the troubled health insurance exchange that’s likely to be soon folded into other state agencies, announced it’s laying off 61 people.
The layoffs are “due to budget constraints,” Executive Director Aaron Patnode said in a letter to Laura Roberts at the Department of Community Colleges and Workforce Development’s State Dislocated Worker Unit. The layoffs will occur on March 10 and April 24.
Most of the layoffs are in customer service, which is done out of the Salem Service Center. Patnode said in an interview that the layoffs have been a long time coming, due to the need for Cover Oregon to become financially sustainable.
After the layoffs are complete, Cover Oregon will be down to 58 employees, Patnode said. Cover Oregon moved to the federal health exchange last fall for 2015 open enrollment, reducing the need for a full workforce.
Lawmakers are set to transfer Cover Oregon’s remaining functions into the Insurance Division at the end of June.
“We have another looming (reduction in force) date for everyone tied to the legislation,” Patnode said. “We’re working very closely with the Department of Consumer and Business Services,” which is over the Insurance Division.
The Insurance Division reported late last week that 81,037 Oregonians have signed up for health plans through HealthCare.gov and another 62,678 outside of the federal health exchange, a total of 143,715. Last year counted 217,563 enrollees.
Open enrollment goes until Feb. 15, so enrollments will keep rolling in.
Date: January 12, 2015