The economic imperative of health equity can transcend the cocktail narrative

Health equity is a win-win for businesses (health plans, health systems, and pharma) and health consumers (beneficiaries, patients, and customers), given its power to expand access (more volume for businesses). Yet, it has not manifested in that way.

There are no healthy communities without health equity.

— HFS OneCouncil member

Fortunately, times are changing as companies recognize that for them to be successful, they need to operate in health communities. The US is at an inflection point where, finally, there is the acceptance of the financial objectives intersecting with health equity, giving health equity the best chance to flourish (see Exhibit 1).

Exhibit 1: Health equity is the state in which everyone has a fair and just opportunity to attain their highest level of health

Source: APC Decisions, HFS Research, 2025

Health equity can expand a society’s economic horizon

In the age of artificial intelligence (AI), a school of thought suggests that the role of people in economic activities is likely to be minimized. Enterprises discuss the possibilities to radically improve productivity without increasing their workforce. Historically, this line of thinking has been common with the advent of the many technology-enabled disruptions and the four main industrial revolutions. Yet, history has shown that more people are needed to realize the benefits of each industrial revolution, albeit for higher-caliber intellectual work. If that holds true going forward (there’s no evidence to suggest differently), labor participation must increase, which can only succeed if we have healthy communities.

As Exhibit 2 indicates, there is a correlation between the prevalence of chronic conditions and a reduction in labor participation. While disease is not the only factor, there is a strong argument that it has a significant impact.

Exhibit 2: Chronic conditions have hurt US labor participation rates, dragging down economic potential

Source: US Dept. of Labor, CMS, CBO, HFS Research, 2025 

The uninsured rate in the US fell below 10% in 2023 from about 18% in 2010. However, it remains close to 20% for Hispanics, Native Americans, and Alaska Natives. For other communities, enrollment in the exchange markets (Affordable Care Act) topped 24 million for plan year 2025 coverage, according to the Centers for Medicare and Medicaid Services (CMS). These figures highlight the power of health equity. Healthcare access for 24 million Americans enables health plans to generate additional revenues through a sustainable service line while expanding the talent pool for businesses looking to hire.

Further, CMS will use the Health Equity Index (HEI) to create a new reward for Medicare Advantage (MA) and Part D contracts that perform well among enrollees with specified social risk factors. Beginning with the 2027 Star Ratings, CMS will use the HEI reward to focus on contracts serving higher percentages of enrollees with the specified social risk factors where more improvement is needed. The net result is that CMS is making it worth it for healthcare enterprises to advance health equity because it will reduce the total cost of care over time, not increase utilization and costs.

Technology is primed to support health equity

Healthcare data in the US is estimated to reach about 10,000 exabytes (1,000 petabytes), a significant amount that is also challenging to use meaningfully. However, advances across the canon of AI, be it natural language processing (NLP) or generative AI (GenAI), expand the possibilities of using data and the pace at which it can be applied. This can accelerate actionable insights and create capacity for providers to target marginalized communities and address their specific needs.

Technology can enable a suite of virtual care solutions, such as telehealth and remote patient monitoring (RPM). These, in turn, can sustainably connect providers and marginalized or minority communities. Creating partnerships with community organizations with inherent trusted relationships with communities in need of care is helping ensure technologies are being applied where and when needed.

Access to care will improve as broadband internet connectivity increases in rural America (currently ~75%, according to multiple estimates), tribal lands, and other marginalized communities. However, in the meantime, it is critical to continue creating care infrastructure and expanding touchpoints to reach more people where they are. Technology will enable care innovation outside traditional settings, further addressing health equity.

It’s the right thing to do

As a nation of immigrants, the US has an intrinsically diverse population. This diversity is core to its economic and innovation prowess. However, diversity also brings with it communities that are traditionally marginalized for various reasons. Addressing their needs and including them in the larger society to contribute to its success and reap its rewards are fundamental.

An example of doing the right thing is the HOPE Commission at M Health Fairview (a partnership between the University of Minnesota, the University of Minnesota Physicians, and Fairview Health Services). HOPE, which stands for Healing, Opportunity, People, and Equity, aims to drive more equitable outcomes, inclusive environments, and experiences for patients, employees, and communities. This effort is optimizing social determinants of health data, improved colon and breast cancer screening rates, and doubled clinical trial participation from specific minority communities.

The Bottom Line: A win-win path exists to address health equity and power economic growth.

There is no hiding from the fact that social inequities create health inequities. While advanced technologies and improved processes can make a difference, a sustained effort is needed to identify the vulnerable among us, address their specific needs with dignity, and create an environment that will keep them where they want to live. Health equity will require a whole-of-society approach, but a straight line to the economics in a capitalistic society certainly helps.