Community health workers (CHWs) are pivotal in advancing health equity and improving population health, especially for marginalized communities. While there is increased federal investment to better integrate CHWs into the health care system, sustainable state funding remains a challenge.

This brief, developed in partnership by the Center for Health Care Strategies (CHCS) and the Association of State and Territorial Health Officials, explores Medicaid financing options for covering CHW-led services, including by using state plan amendments, section 1115 demonstration waivers, and managed care flexibilities. It also highlights opportunities for state and territorial public health agencies to collaborate with Medicaid agencies to support these efforts.

See also a related interview that features a conversation with Diana Crumley, JD, MPAff, former CHCS associate director of delivery system reform, who further explores financing mechanisms that states can use to integrate CHW services into the health care system and shares state examples.