Health Affairs: Medicaid Reinvestment Requirements Can Improve Community Health And Equity

Medicaid managed care plans (MCPs) reinvest revenue into thecommunities they serve

Health Affairs

By Jeremy Cantor, Patricia E. Powers and Anupam Sharma (Health Affairs)

Abstract

In the past few years, multiple states have implemented new policies requiring Medicaid managed care plans (MCPs) to reinvest a percentage of revenue or profit back into the communities they serve (see exhibit 1 below). The majority of these policies have been enacted as part of contracting processes for MCPs, indicating that the margins on Medicaid lines of business are significant enough to accommodate such investments…