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Scaling Food is Medicine strategies

How are payers partnering on medically tailored meals?


In brief
  • Medically tailored meals (MTM) potentially improve health but face reimbursement and evidence challenges.
  • Payers seek better MTM integration, clearer goals and consumer-centered approaches.
  • Value-based partnerships and data sharing enhance nutrition support and health outcomes.

Over the past five years, medically tailored meals (MTMs) have gained traction as potentially cost-effective interventions to improve outcomes for consumers and reduce healthcare spending. With new guidance from the Centers for Medicare & Medicaid Services, Medicaid waivers and public support from the U.S. Department of Health and Human Services, MTMs are entering the mainstream as part of a national Food is Medicine (FIM) strategy. New York State has been a leader in integrating MTMs into state Medicaid programs, offering a model for healthcare insurance providers.

The outcomes and projected savings speak for themselves: MTM recipients report improved quality of life, healthier eating habits and fewer days when mental health interferes with daily activities. A recent cost-modeling study estimated that national implementation of MTMs could save $13.6 billion in healthcare spending and avoid 1.6 million hospitalizations annually. Finally, studies have projected that scaling MTMs nationally could save up to $26 billion annually, with net cost savings in nearly every state.

In collaboration with God’s Love We Deliver, one of New York’s oldest nonprofits focused on MTMs, this piece will explore: 

  • Current payer sentiments on nutrition and MTM partnerships 
  • Comparisons of MTM market solution archetypes and considerations for scalability and impact 
  • Payer perspectives on the future direction and opportunities for FIM solutions

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Acknowledgements

Thank you to the God’s Love We Deliver team for collaborating on this report.
EY-Parthenon’s Haley Rhodes Clement and Brittany Arnold contributed to the report.

Summary 

Medically tailored meals (MTMs) are becoming mainstream in US healthcare, especially for Medicaid and Medicare Advantage populations. Supported by federal guidance, MTMs improve health outcomes, reduce costs and address social needs through customized nutrition. Studies and pilots show MTMs cut hospital admissions and spending, but reimbursement models remain fragmented. High-performing MTM programs offer quality, culturally relevant meals, reliable delivery and strong community partnerships. For greater impact, payers can build collaborative, consumer-focused partnerships integrating MTMs into broader care strategies.

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