Community Benefit

Contributions to Statewide Nonprofit Insurance Organization

Please Take Note: The information provided does not constitute legal or tax advice. The material is provided for informational/educational purposes only. Please consult with counsel regarding your organization's particular circumstances.

Question:We are part of a statewide nonprofit insurance organization that acts as a capitated insurer for Medicaid patients:

  • Can contributions to start up the insurance organization be reported as community benefit?
  • If the hospital, along with other hospitals, participates with the organization in doing a community health needs assessment and community health improvement plan, can those expenses be reported as community benefit?

Recommendation: We recommend that the contributions to nonprofit insurance organization be reported as community benefit because the organization promotes access to health care for Medicaid patients and thereby meets the community benefit objectives of increasing access and improving community health. Report contributions in Category E. Cash and In-kind Contributions. As with all financial contributions, the hospital should have documentation that the organization receiving the funds will use the funds for a community benefit purpose.

We recommend reporting all costs associated with community health needs assessments, including costs related to collaborative and joint assessments. Report in Category G. Community Benefit Operations.

(November 2013)