WASHINGTON, DC – February 7, 2024 – Starting this fall, Medicaid funds will be appropriated towards paying the rent for low resource people who meet certain criteria. According to the Centers for Medicare and Medicaid Services (CMS), at least 19 states will be allocating funds from Medicaid to address the homelessness crisis. While clinical care is estimated to contribute 10-20% to health outcomes, the remaining 80-90% of modifiable health factors are health-related behaviors, socioeconomic factors, and physical environment factors (like safe housing). Having a decent, stable, and safe place to live is the first prerequisite to better health and reducing harmful behaviors. Therefore, the Biden administration has made this possible by encouraging states to test out new Medicaid pilot programs promoting social needs like housing, nutrition, and transportation. Medicaid is a federal health insurance program for people with low resources and disabilities. Three percent of Medicaid dollars go to social needs like housing, representing billions of dollars yearly.
The new pilot program allows Medicaid to fund up to 6 months of rent. Meanwhile, participating states could expand rent coverage if they find health outcome improvements and cost-savings. Arizona and Oregon will be the first states to provide rental assistance this fall. Eligible persons in Oregon will use the funds to avoid losing their home. It is estimated than 125 thousand Oregon Medicaid beneficiaries will qualify. Arizona is planning to expand upon a current program for Medicaid beneficiaries with serious mental illness to keep their house or to obtain housing. Preliminary data indicate a large reduction in emergency room visits, fewer hospital admissions, and a significant cost savings. 17 other states have applied to the new Medicaid program, including: New York, California, Hawaii, Arkansas, Tennessee, West Virginia, Montana, and Washington.
The need for housing has never been greater than the present time because of economic challenges like the scarcity of affordable housing, lack of employment opportunities, and low wages. Mental and physical health also play a role. More and more Americans are homeless, reaching record highs in 2023 to more than 650 thousand people.
Xavier Becerra, secretary of the U.S. Department of Health and Human Services, told KFF News, “A health care dollar can do more than just pay for a doctor visit or hospital stay.”
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Contact: Dr. Dick Needleman, Health reporter, 103.3 AshevilleFM, healthyasheville@ashevillefm.org