The Untapped Potential of Medicaid in Reducing Harmful Greenhouse Gas Emissions
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Associated Project
Catalyzing State Medicaid Leadership on Climate Change Mitigation
Prepared for:
The Commonwealth Fund
Key Findings
- State Medicaid agencies’ collective $800 billion purchasing power and regulatory capacity represent a unique policy lever to incentivize and support the health system’s efforts to reduce harmful greenhouse gas (GHG) emissions.
- The Inflation Reduction Act provides funding that strengthens the role of states as leaders in policy to reduce GHG emissions.
- State Medicaid agencies can employ multiple strategies to pave the way for climate action, including using established waivers, implementing innovative payment structures and quality measures, and establishing multisector partnerships.
- State policy leaders can collaborate, learn from one another, and continue to expand efforts to both adapt to the impacts of climate change and reduce GHG emissions.
The health system accounts for roughly nine percent of harmful greenhouse gas (GHG) emissions in the United States, and the effects of climate change disproportionately impact Medicaid beneficiaries. By reducing GHG emissions in the health system, state Medicaid agencies can proactively reduce their contribution to climate change at the source. These agencies can pull unique levers to incentivize and support the health system’s efforts to reduce harmful emissions through innovative payment structures, policy pathways, partnerships, and measurement. This blog examines why states and Medicaid are in such a prime position to address GHG emissions and offers insights into how Medicaid programs can play a leading role in fostering these efforts.
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