UnitedHealth Group investing $100 million in affordable housing initiatives

Photo courtesy of UnitedHealth Group

UnitedHealth Group is investing an additional $100 million toward affordable housing initiatives with a focus on the Health and Housing Fund, a partnership with Stewards of Affordable Housing for the Future and National Affordable Housing Trust.

Affordable housing has been an ongoing investment priority for UHG, which owns the nation's largest insurer, UnitedHealthcare. To date, the company's investments total roughly $800 million, and according to a statement, this has resulted in the creation of nearly 19,000 homes for those struggling with housing insecurity.

The new investment will add about 1,000 homes to that total, said UHG.

Construction is already underway – in East Point, Georgia, Monroe, North Carolina and Beaverton, Oregon – for three affordable housing communities that will provide about 250 homes for older adults and families. Additional affordable housing locations will be announced in the coming months as development proposals are finalized.

A $1 million investment will support on-site health-related services for residents in those communities, which will be used by the Stewards of Affordable Housing to measure and report on property residents' health outcomes.

WHAT'S THE IMPACT

Along with factors such as transportation access, substance abuse and behavioral health issues, low income is a social determinant of health that can suppress the ability of modern medicine to improve lives, according to a 2019 PricewaterhouseCoopers report. 

By investing earlier in social determinants strategies that help people with housing, exercise, mental health support and the ability to afford medications, governments and health systems stand to save money in the long term and improve health outcomes.

PwC's results suggest that action on the SDoH front isn't optional; healthcare leaders who don't act on social determinants will likely spend more and more money on worse and worse health outcomes.

A 2017 National Academy of Medicine report found that 80% of an individual's health is determined by what happens outside of a doctor's office. And according to the National Low Income Housing Coalition, COVID-19, coupled with economic conditions, has brought harm to millions of families, with 70% of the nation's 10.8 million extremely low-income renter households being severely burdened by housing costs – spending more than half of their incomes on rent and utilities.

THE LARGER TREND

Since 2011, through its UnitedHealthcare and Optum businesses, UHG has helped build new affordable housing developments in 26 states and Washington D.C. for people in need of affordable housing supportive services. The investments are made through the use of Low-Income Housing Investment Tax Credits, Community Reinvestment Act loans and direct investments.

Accordion to UHG, it's also investing in programs and partnerships focused on food, health literacy, behavioral health and social isolation, including $100 million to fight the COVID-19 pandemic and support those most directly impacted by the public health emergency, such as healthcare workers, hard-hit communities and older adults.

"The need for affordable housing and the connection between housing and health continues to be top of mind throughout the communities we serve," said Tim Spilker, chief executive officer, UnitedHealthcare Community & State, a UnitedHealth Group business. "Our work to address social determinants and help to create new affordable housing opportunities that include support services is driving better health outcomes for some of the nation's most underserved populations."
 

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Email the writer: jeff.lagasse@himssmedia.com