The COVID-19 pandemic made one thing painfully clear: healthcare outcomes in the U.S. are not equal. White patients, on average, fare better than patients of color. During the pandemic, Black, Latino, and Asian Americans were hospitalized and died at much higher rates than white Americans. These disparities wiped out years of progress in life expectancy for Black and Latino communities.

In California, this divide is especially significant. Over a third of the state is covered by Medi-Cal, California’s version of Medicaid — and more than two-thirds of those enrollees are people of color. That makes Medi-Cal a key opportunity to reduce health disparities statewide.

The Role of Insurers

Most Medi-Cal patients are served by managed care plans run by private insurers. This year, the state is renegotiating these contracts for the first time on a statewide basis. This opens the door to push insurers to improve care — not just services on paper, but actual health outcomes.

These contracts can include specific requirements: better access to specialists, improved treatment quality, and — crucially — tracking and fixing disparities in outcomes based on race and ethnicity.

Why Data Matters

We can’t fix what we don’t measure. That’s why better data collection is essential. It’s not enough to know how many patients get mammograms or diabetes screenings. We need to know if Black, Latino, and Asian patients are getting those services at the same rates as white patients — and if not, why not.

With this insight, insurers can take real action. If data shows Latino patients are less likely to get timely cancer screenings, insurers can target outreach, bring in mobile clinics, or support community programs to close that gap.

Beyond Healthcare

Insurers can’t solve everything. Many health disparities stem from broader challenges like poor housing, food insecurity, or lack of transportation — all common for low-income families. But with the right incentives, insurers can help mitigate those barriers. That might include expanding telehealth, helping families sign up for broadband, or partnering with food and housing programs.

A Model That Works

California doesn’t have to start from scratch. Its Obamacare exchange, Covered California, already requires insurers to tackle disparities in chronic conditions like diabetes and asthma. Some of those efforts have included mobile care units and local outreach events.

Now, it’s time for Medi-Cal to do the same — with real financial accountability tied to health improvements for underserved communities.

Citation: Los Angeles Times Editorial Board, “A golden opportunity to narrow California’s racial health disparities,” 2021.