March 2021
This issue brief that explains the funding and policies that are essential to the work of Community Health Centers. COVID-19 exposed just how thin the financial margins can be among health centers. And just as we hope that the pandemic will soon be over, there is a case to be made for continued and sustained investment in the health center program that is increasingly being called upon to counter public health challenges.
Running a vast system of care requires multiple and diverse funding and policies to support it, much like a four-legged stool. These legs include:
• Federal Health Center appropriations;
• Medicaid;
• Savings from the 340B Drug Discount Pricing
Program; and
• Recent federal COVID-19 emergency relief.
Without all four legs in place, the stool will not balance. And balance is essential for a system of care on which 30 million people depend, especially in times of crisis and chaos. Health centers depend on mandatory and discretionary funding from Congress, (the latter of which is decided each year), and Medicaid reimbursement for services.
How these factors work together largely depends on the constantly shifting political climate in Washington and in the states. Few may realize, as the brief notes that, “one-fifth of all people in the U.S. who rely on Medicaid for insurance coverage get their care at health centers, where they comprise half the patient population.” The longstanding partnership between Medicaid and health centers allows them to improve outcomes as well as accrue savings, as they save around $2,400 per Medicaid patient.
We note that the NACHC issue brief comes on the heels of health centers’ rollout of a massive vaccination effort against COVID. They have been tapped by the Biden Administration to ensure equity in protecting hard-to-reach populations from COVID-19, such as communities of color, migrant and agricultural workers, the poor, public housing residents and people who have language barriers.
The recently enacted American Rescue Plan will provide an infusion of much-needed resources– including 7.6 billion in flexible emergency COVID-19 funding— as health centers mark one year of fighting the pandemic on the frontlines. As welcome as this relief is for health centers, it is one-time funding. Congress will need to provide billions more to ensure health centers remain open and available for needed preventive and chronic care for the millions of newly jobless and uninsured, and to COVID-19 vaccination efforts and testing until we’ve reached the end of the pandemic.
Related Resources:
Learn more about Community Health Center funding and NACHC’s funding priorities.
