Making Progress Toward Health Equity: Opportunities for State Policymakers to Reduce Health Inequities Through Payment and Delivery System Reform

In light of the stark disparities in COVID-19 illnesses and deaths among Black, Indigenous, Latinx, and other people of color, decision-makers must prioritize policy solutions that measurably improve health equity. Payment and delivery reform is one important lever to advance health equity, and several states are creating equity-focused financial incentives in their Medicaid programs.

This issue brief explores this important new strategy, focusing on three states: Oregon, Minnesota, and Washington. We explore these states’ measurement and payment approaches, identify key lessons, and outline actionable recommendations for states to advance health equity by using similar payment mechanisms.