Nonprofit community health centers set up for-profit insurance plans

Some nonprofit community health centers, faced with financial challenges, are starting for-profit insurance plans, according to a Kaiser Health News article produced in collaboration with USA Today. The trend began in 2008 when Jessie Trice Community Health Center in Miami established Prestige Health Choice, a for-profit Medicaid health plan. Florida pays a monthly fee per enrollee to provide care and 14 community health centers also participate in the plan. More community centers are considering the model as more people become eligible for Medicaid and states move enrollees into managed care plans, KHN reports. The model provides community health centers with a financial incentive--the fixed fee--to keep patients healthy and out of the hospital and gives centers access to money they can invest back into care. In addition, disputes over services and benefits are typically resolved easily. Article

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