Community Reinvestment: Forging New Partnerships in Medicaid

Manatt Health September 17, 2024
Alison Shippy, Shelli Silver, Sydney McClendon

Summary Points:
At least 10 states have implemented, or are in the process of implementing, a community reinvestment requirement in which Medicaid managed care organizations (MCOs) are required to reinvest in the communities they serve to improve health. State Medicaid agencies set parameters for what community reinvestment funding can support, with many using community reinvestment to increase funding for initiatives that address the social drivers of health. States often use one of two strategies to determine the amount of funding MCOs reinvest: one requires MCOs to reinvest a percentage of their annual profit (e.g., 5% of profit), while the second allows MCOs that do not reach a minimum Medical Loss Ratio in a...

Summary Points:

At least 10 states have implemented, or are in the process of implementing, a community reinvestment requirement in which Medicaid managed care organizations (MCOs) are required to reinvest in the communities they serve to improve health.
State Medicaid agencies set parameters for what community reinvestment funding can support, with many using community reinvestment to increase funding for initiatives that address the social drivers of health.
States often use one of two strategies to determine the amount of funding MCOs reinvest: one requires MCOs to reinvest a percentage of their annual profit (e.g., 5% of profit), while the second allows MCOs that do not reach a minimum Medical Loss Ratio in a...

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2024-09-17T12:56:57-04:00