Centene, the nation’s largest Medicaid insurer, announced a nearly $1 billion commitment to affordable housing development across eight states. This initiative reflects a growing understanding within the healthcare industry that social factors significantly impact health outcomes.
Sarah London, CEO of Centene’s philanthropic arm, the Centene Foundation, unveiled the multi-year partnership with developer McCormack Baron Salazar at the Fortune Brainstorm Health conference. The collaboration will provide below-market loans to facilitate the construction of thousands of affordable housing units.
“We know 80% of what drives health is nonmedical,” London said, highlighting the importance of addressing social determinants of health, like secure housing, in improving overall well-being.
This move by Centene aligns with a recent trend in the healthcare sector. Other major insurers, such as UnitedHealth Group and Kaiser Permanente, have also made significant investments in affordable housing initiatives, recognizing the connection between stable housing and better health.
The lack of affordable housing options can have a detrimental impact on health. Poor living conditions can exacerbate existing health problems, while the stress of housing insecurity can lead to new ones. Additionally, unstable housing can disrupt access to healthcare services.
Centene’s commitment is a positive step towards acknowledging the social factors that influence health. By investing in affordable housing, Centene hopes to improve the health outcomes of its Medicaid beneficiaries and potentially reduce overall healthcare costs.
