Social and Economic Factors Drive 40% of Health Outcomes: Better Medicare Alliance Releases Report on Social Determinants of Health

As many HCAOA members know, the Medicare Advantage landscape is changing quickly! Health plans can now offer additional supplemental benefits and services that are not primarily health-related and that target beneficiaries with certain chronic conditions. These changes led to a dramatic increase in plan activity to address social needs and prompted new business and technology innovations. To further dive into the changes happening surrounding social determinants of health (SDOH) or “the non-medical factors that influence health outcomes,” last week Better Medicare Alliance released a new study conducted by NORC at the University of Chicago that outlines the many ways Medicare Advantage is taking action to address social determinants of health while acknowledging the barriers that still remain, and offering solutions for reform. 

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According to the report, “One widely cited analysis from the University of Wisconsin Population Health Institute concludes that Social and Economic Factors drive 40% of health outcomes, with closely linked factors such as Physical Environment and Health Behaviors accounting for another 10% and 30%, respectively. Clinical Care accounts for the remaining 20%.” 

The focus on SDOH reflects broader trends in the U.S. health care system, including growing recognition that SDOH may have a more significant influence on health outcomes than clinical care and the increasing levels of social need within the Medicare population. The report presents a variety of policy recommendations, which include setting stronger standards on SDOH data collection, and more. 

Click here to read the report.

Click here to read a quick fact sheet.