Benefits Data Trust and the Community Outcomes Fund at Maycomb Capital Announce Social Drivers of Health Financing Facility for Medicaid Plans
BDT joins with Maycomb’s Community Outcomes Fund to expand work delivering innovative, ROI-positive solutions to Medicaid plans and their members
PHILADELPHIA, Pa., October 5, 2021 – National nonprofit Benefits Data Trust (BDT) and pioneering Community Outcomes Fund at Maycomb Capital have announced a partnership that will improve individual and community health outcomes and reduce avoidable care costs by catalyzing healthcare investments from insurers in public benefits access.
This partnership will give healthcare organizations the opportunity to contract with BDT on the basis of results for their members—an outcomes-focused model aimed at expanding access to public benefits, including the Supplemental Nutrition Assistance Program (SNAP), the Special Supplemental Nutrition Program for Woman, Infants, and Children (WIC), the Low-Income Home Energy Assistance Program (LIHEAP), and more. BDT will use flexible, mission-aligned capital from the Community Outcomes Fund to cover the upfront cost associated with enrolling eligible members in benefits. The healthcare organization will pay BDT through a separate outcomes-based contract, only when BDT fulfills the negotiated outcomes. This ‘social impact’ loan will enable a healthcare organization, such as a Medicaid Managed Care Organization (MCO), to easily access outside innovation capital and make larger-scale investments in addressing the social needs of their members.
Research has demonstrated that access to SNAP improves health and decreases avoidable care utilization, resulting in more than $1,400 in annual care cost savings per adult. However, before the pandemic only 82% of eligible individuals and 48% of eligible seniors were enrolled in SNAP, leaving millions of people hungry and billions of dollars in health care cost savings unrealized. The positive health outcomes and potential savings generated from connecting members to benefits present an ROI-positive (return on investment) opportunity for Medicaid insurers.
The new partnership between the Community Outcomes Fund and BDT is timely as risk-bearing healthcare entities realize the value that specialized non-profits bring to their social drivers of health (SDoH) initiatives. Contractual complexities have stunted the use of social capital and financing frictions have impeded investment in the SDoH by insurers. BDT and Maycomb have collaborated to develop a novel financing facility that solves both challenges.
“This financing facility has the potential to catalyze sustainable investment in a proven, scalable slice of the SDoH opportunity,” said Jared Susco, Chief Finance & People Officer of BDT. “It addresses common barriers that healthcare entities have faced when trying to effectively deliver SDoH interventions at scale.”
The Community Outcomes Fund identified BDT – an organization that uses data, technology, and policy to connect people to public benefits increasing access to food, healthcare, housing, and more – as a partner that can implement and quickly expand large-scale interventions focused on helping those in need access underutilized public benefit programs.
“We believe access to public benefits can be a key component in addressing disparities in wealth and health,” said Andi Phillips, Founder and Managing Partner at the Community Outcomes Fund. “BDT and their healthcare partners have already connected thousands of households to benefits, and collaboration between BDT, the healthcare industry, and the Community Outcomes Fund can generate even more impact.”
Prior to the COVID-19 pandemic, more than $60 billion in benefits to pay for food, healthcare, and more were going untapped each year. Multiple barriers can make it challenging to access federal and state assistance programs, but through BDT’s partnerships with healthcare payers like Aetna Better Health of Pennsylvania, UPMC Health Plan, and others, plan members experience a more streamlined process where they can receive one-on-one assistance to complete benefit program applications.
BDT is seeking to contract with multiple healthcare organizations with an interest in outcomes-based arrangements to help their members access benefit programs. For more information, please visit https://bdtrust.org/healthcare-innovation or reach out to BDT at firstname.lastname@example.org.
About Benefits Data Trust
Benefits Data Trust (BDT) harnesses the power of data, technology, and policy to provide efficient and dignified access to assistance, improving people’s health and financial security. Together with a national network of government agencies and other partners, we streamline public benefits systems and directly connect eligible families and individuals to programs that help pay for food, healthcare, housing, and more. A nonprofit since 2005, BDT has secured more than $7.5 billion in benefits for households across the country, building pathways to economic mobility and a more equitable future.
About the Community Outcomes Fund at Maycomb Capital
Outcomes Financing – sometimes called Pay for Success – has emerged as a promising way for local governments and healthcare organizations to fund what works and improve outcomes for disadvantaged communities. The Community Outcomes Fund invests in public-private partnerships by financing the delivery of high-impact services upfront and receives repayment as the program achieves agreed-upon outcomes. The Fund's investments drive dollars towards evidence-based services that measurably improve economic, social, educational, and health outcomes in low-income communities. Moreover, the Fund's investments increase transparency, improve accountability, and facilitate a meaningful shift in public policy to align funding with priority outcomes in communities.