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Payers Kick Off 2021 Investments in Social Determinants of Health

As the US continues to experience exacerbated social determinants of health issues, some payers are starting the year by investing in housing, food, and health equity.

Kelsey Waddill
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Published: 11 Jan 2021

Payers have started announcing partnerships and investments for 2021 that aim to address social determinants of health, particularly food scarcity, housing insecurity, and health equity.

Some experts have argued that payer funding directed towards non-profits—or payer philanthropy—does not provide solutions to social determinants of health issues. These investments highlight the problems, but do not incentivize long-term, sustainable, and scalable fixes, the argument goes.

Payers, however, have continued to make these investments due to perceived moral obligations and, at times, the ways in which supporting these services can decrease healthcare spending. Although the return on investment can be hard to calculate, payers with local partners can invest in solutions that produce change.

Where payers choose to invest can highlight disparate or aligned focuses across the payer industry when it comes to tackling social determinants of health.

Humana, Blue Cross and Blue Shield of North Carolina (Blue Cross NC), and CareSource were among the first to announce social determinants of health investments in 2021.

Humana

Humana is working with a few Ohio nonprofits to tackle food scarcity and housing insecurity.

The major payer will give a total of $500,000 to five recipients: three organizations that will address food insecurity and two affordable housing programs.

The three companies that offer meals to Ohioans struggling with food insecurity are The Foodbank, the Greater Cleveland Food Bank, and the Mid-Ohio Food Collective.

“Partnerships with health care companies like Humana will go a long way toward improving health outcomes and supporting our food-based health care work, including our ‘Farmacy’ initiatives, here in Ohio,” said Matt Habash, president and chief executive officer of the Mid-Ohio Food Collective.

The payer will also provide funding to Move to PROSPER so that the organization can expand its housing pilot program. The pilot provides families with financial support as well as personal development resources. Humana will also assist the organization through healthcare and research support.

Harper’s Pointe is the other housing program that Humana’s funding will support. The site, which CHN Housing Partners co-developed, offers rent-subsidized housing and services to individuals who have been homeless for 600 days or more. Humana’s funding will cover operational staff who connect residents with a variety of services, including mental healthcare.

Humana is no stranger to investing in social determinants of health. In 2020, the Humana Foundation set aside $7.6 million to combat social determinants of health in the southeastern region of the US.

Blue Cross and Blue Shield of North Carolina

Blue Cross NC and the American Heart Association are offering around $100,000 in grant funds to support health equity in North Carolina.

“Grantees were asked to show how their applications would reach under-resourced communities and were linked to sustainable policy and systems changes,” the press release explained.

In 2021, the payer and nonprofit will offer the same amount of grant funds as they did in 2020. However, there will be comparatively fewer grant recipients, with 21 recipients in 2021 as opposed to 27 recipients in 2020.

Funds will be distributed to 21 community health organizations that support social determinants of health related to heart health in underserved demographics.

The grant awardees address a broad span of social determinants of health needs, from transportation and food access to chronic disease prevention. These organizations target populations including women, families, and Hispanic or Latino residents.

"The strain of COVID-19 has highlighted the inadequate access to quality health care across the country, and we’re proud to work with partners to lead the charge in creating a healthier state,” explained Cheryl Parquet, director of community engagement and marketing activation at Blue Cross NC.

CareSource

CareSource, a Medicaid managed care organization in Georgia, Indiana, and Ohio, will invest $1 million in affordable housing in Oklahoma, where the payer is bidding for Medicaid business.

The Census Bureau’s Household Pulse Survey showed the percentages of adults in each state who faced a backlog on rent or mortgage payments or who were unsure that they could cover the next month’s housing payment. In week 21—a period which spanned December 9 through December 21, 2020—, Oklahoma had the eleventh highest percentage.

“We know that access to quality, affordable housing is connected to an individual’s overall health and well-being,” said Bill Baker, chief executive officer and market president of Oklahoma at CareSource.

“We are dedicated to improving the health of Oklahoma residents and our goal with this investment is to assist in producing the best opportunities for Oklahomans who may be searching for affordable housing.”

The managed care organization has committed its financial support to the Midwest Housing Development Fund, Inc. (MHDF). MHDF’s projects are located in rural regions of Oklahoma, where affordable housing is hard to find.

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