California Looks to Spend Some Medicaid Money on Housing

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California Looks to Spend Some Medicaid Money on Housing
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California Gov. Gavin Newsom wants to use Medicaid money to pay for housing for some vulnerable people.

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“It’s a huge step toward breaking down the silos that have gotten in the way of taking care of the whole person rather than limb by limb and illness by illness,” said Anthony Wright, executive director of Health Access California, a consumer advocacy group. California experimented with using Medicaid money for some housing-related expenses in 2016 when it launched a pilot project in 26 counties. While Medicaid did not pay for rent, it paid for things like security deposits and furniture.

Now California wants to go further by using Medicaid money to directly pay some people's rent. Democratic Assemblymember Joaquin Arambula, who chairs the budget subcommittee that will vet Newsom's proposal, said lawmakers are supportive. Arambula spent a decade as an emergency room doctor. Kelly Bennett, founder and CEO of Sacramento Covered, said that during California's first experiment with using Medicaid money for housing services, it would often take up to eight months for workers to place a patient in an apartment. In some cases, people have waited for years to find a place.

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