States Investing Billions in Using Medicaid Funds to Provide Housing for Homeless Americans
Introduction
Certain states in the U.S. are embarking on a high-stakes health care experiment by using public health insurance money to provide housing for the country’s poorest and sickest citizens. This initiative aims to address the growing homelessness epidemic and improve the health outcomes of vulnerable individuals. While there is debate over the long-term effectiveness of this approach, the Biden administration is encouraging other states to follow suit.
State Efforts to Address Homelessness
California is leading the way with a $12 billion Medicaid initiative that focuses on helping homeless patients find housing, covering rent, and preventing eviction. Other states, such as Arizona, Oregon, and even traditionally conservative Arkansas, are also dedicating significant funds to provide housing services for their neediest populations.
Directing Medicaid Funds Towards Housing Aid
According to the Centers for Medicare & Medicaid Services, at least 19 states are currently using Medicaid funds to support housing aid programs. Although the long-term impact on health and housing stability is still uncertain, state Medicaid programs are embracing these initiatives with the hope of keeping vulnerable individuals out of institutions like nursing homes, hospitals, and jails.
The Debate Surrounding Health Care Funding for Housing
Using health care funding to address housing needs sparks a philosophical debate. While proponents argue that stable housing can improve health outcomes and save overall costs on institutions, skeptics worry that the limited resources of Medicaid could be better utilized for traditional medical care. There are concerns that diverting funds to housing may hinder patients’ access to necessary healthcare services.
The Mixed Evidence and Experimentation
There is mixed evidence regarding the effectiveness of using Medicaid funds for housing. Studies have shown reduced emergency department visits and increased use of routine mental health care among individuals with access to long-term housing. However, participants still faced high hospitalization rates and relied on emergency rooms for routine medical care. The Biden administration and state Medicaid programs view these initiatives as experiments.
Expanding Social Services in Medicaid
State Medicaid programs are shifting towards delivering social services in addition to traditional medical care, aiming to improve overall population health. The federal government, under the Biden administration, supports and encourages Medicaid directors to offer a range of services. This broader strategy acknowledges the impact of social determinants of health and aims to make residents healthier.
Health Care Dollar for Wellness Care
Xavier Becerra, Secretary of the U.S. Department of Health and Human Services, advocates for using federal health care dollars for wellness care. He emphasizes the importance of stable housing for maintaining good health, noting the challenges faced by homeless individuals in accessing healthcare services. The federal government aims to improve health outcomes and save taxpayer money through these initiatives.
Concerns and Criticisms
Not all health care leaders or homelessness experts support the use of Medicaid funds for housing. Critics argue that housing assistance should be left to social service organizations with specialized expertise. There are concerns that diverting resources from traditional medical care may compromise quality and access to healthcare services, especially for individuals with complex medical conditions.
The Role of Medicaid Programs
State Medicaid programs, responsible for providing care to millions of Americans, often struggle to deliver basic medical services. Critics worry that expanding into social services like housing may divert attention and resources from addressing core healthcare challenges and meeting patient needs. However, states remain committed to addressing the growing homelessness crisis.
The Future of Housing Initiatives
Although the success of housing initiatives funded by Medicaid remains uncertain, states have secured funding for five years to implement their programs. California, in particular, hopes to make these benefits permanent. While potential changes in political leadership could impact these initiatives, states are determined to prioritize the support and stability of their most vulnerable populations.
Disclaimer: This article was produced by KFF Health News, a national newsroom focused on in-depth journalism about health issues. KFF Health News is an editorially independent service of the California Health Care Foundation, one of the core operating programs at KFF.