<p>California Gov. Gavin Newsom wants to use federal healthcare funds to cover at least six months of rent for the state&#8217;s disproportionately large homeless population and for those on the brink of losing their housing.</p>
<p>Newsom recently asked President Biden to approve a new program called &#8220;transitional rent&#8221; under Medi-Cal, the state&#8217;s version of Medicaid. According to <a href="http://latimes.com/california/story/2023-03-20/prescription-for-housing-california-wants-medicaid-to-cover-6-months-of-rent">The Los Angeles Times</a>, state officials modeled the program after similar federally approved programs in Oregon and Arizona that would pay up to six months of rent or temporary housing for low-income enrollees who rely on the state&#8217;s healthcare.</p>
<p>&#8220;I&#8217;ve been talking to the president,&#8221; Newsom told KHN. &#8220;We cannot do this alone.&#8221;</p>
<p>Newsom and proponents of the aid argue temporarily covering rent for homeless people would save taxpayers money rather than paying more into California&#8217;s institutional care in hospitals, nursing homes, and jails.</p>
<p>Bruce Alexander, a Centers for Medicare &amp; Medicaid Services spokesperson, declined to disclose to The Times whether the federal government would approve the request.</p>
<p><a href="https://nashp.org/how-states-use-federal-medicaid-authorities-to-finance-housing-related-services/#:~:text=While%20Medicaid%20cannot%20pay%20for,to%20find%20and%20sustain%20housing.">The National Academy for State Health Policy</a> writes Medicaid cannot directly pay for housing development or rent. However, it can support services for enrollees to find and sustain housing.</p>
<p>The state&#8217;s program has already helped low-income patients with rental security deposits for homeless people and those facing eviction through a federally approved program called CalAIM, which The Times reported has transformed Medi-Cal.</p>
<p>Homelessness in California continues to grow, leading the nation with the largest population for over a decade, according to the <a href="https://www.ppic.org/blog/homeless-populations-are-rising-around-california/#:~:text=As%20of%202022%2C%2030%25%20of,%3B%20233%2C832%20in%20the%20US).">Public Policy Institute of California</a>.</p>
<p>Last year, the think tank estimated 30% of the 233,832 people in the United States experiencing homelessness live in California based on the federal government&#8217;s imperfect &#8220;Point in Time&#8221; count on the nation&#8217;s homeless population. However, Newsom admitted those numbers likely don&#8217;t reflect the state&#8217;s official count, acknowledging it is much higher than tallied.</p>
<p>Researchers at the institute reported state data indicating that 5% of Medi-Cal patients account for 44% of the program&#8217;s spending. Many patients experience some form of homelessness and frequently visit emergency rooms, covered mainly by the state health program.</p>
<p>&#8220;California emergency departments (EDs) treated about 143,000 people experiencing homelessness in 2019, according to hospital discharge records,&#8221; the report <a href="https://www.ppic.org/publication/policy-brief-how-hospital-discharge-data-can-inform-state-homelessness-policy/">reads</a>. &#8220;Almost half of homeless patients visited the ED four or more times in the year.&#8221;</p>
<p>Insurers argue mixing healthcare funds with housing would not save the state money, while healthcare officials point to California&#8217;s affordable housing crisis as another significant issue, which Newsom has publicly acknowledged.</p>
<p>&#8220;We can design incredible Medicaid policies to alleviate homelessness and pay for all the necessary supportive services, but without the adequate housing, frankly, it&#8217;s not going to work,&#8221; Dr. Margot Kushel, director of the University of California-San Francisco&#8217;s Center for Vulnerable, told The Times.</p>
<p>If authorized by the Biden administration, homeless people who qualify for the limited aid in California could begin receiving rent payments by 2025, eventually costing the state approximately $117 million annually after it&#8217;s up and running.</p>
<p>According to The Times, 11,000 people have already enrolled in Medi-Cal housing services.</p>

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California Asks Biden Administration To Cover Six Months Of ‘Transitional Rent’ For Homeless With Medicaid