PacificSource Health Plans is offering to provide health coverage for consumers now covered by Preferred Health Plan Inc.

PHP, Kalamath Falls, Ore., is withdrawing from the market, according to officials at the Oregon Department of Consumer and Business Services.

PHP was started in 2001 by Sky Lakes Medical Center, Klamath Falls, Ore., and now has about 3,600 enrollees in Klamath County and Lake County.

PacificSource Health Plans, Salem, Ore., a carrier that has a similar provider network, has agreeed to provide similar coverage for large groups at similar rates until the contract renewal date, officials say.

Small groups and individuals with PHP coverage can buy PacificSource coverage or get coverage from another insurance company, officials say.

“Eventually, all policyholders will have to change companies,” officials say. “PHP is no longer soliciting new business and won’t renew policies after May 15.”

For PHP policyholders, PacificSource has agreed to credit PHP policyholders for deductibles and other out-of-pocket costs they have paid during the current year.

PacificSource also has agreed to allow people with individual policies to buy insurance through PacificSource without the risk of being turned down for health reasons, officials say.