Extend Medicaid coverage for housing support

Housing insecurity, which includes lack of affordable housing, overcrowding living conditions, and homelessness,[4][5] exposes individuals and families to increased stress, negatively impacting mental and physical health.[4][6][7] Mental health and substance use disorders (MH/SUDs) impact a person’s ability to obtain or maintain housing, especially when faced with discrimination.[5] Research overwhelmingly demonstrates that supportive housing—including Housing First[8][9]—improves individual outcomes, enhances communities, and saves public dollars.[1]

The Centers for Medicare and Medicaid Services issued updated guidance on Medicaid waivers, allowing states to use Medicaid funding to support housing expenses like rent and temporary housing.[10] Rent subsidies provided to individuals experiencing homelessness were found to improve reported mental health and reduce both emergency department visits and use of crisis stabilization services.[10] Congress should allow Medicaid to reimburse housing authorities for training and education about housing insecurity,[2] provide incentives in Medicaid funding to coordinate comprehensive support for housing placements,[2], and allow states to fund transitional housing for individuals experiencing homelessness after leaving an institutional setting (e.g., inpatient psychiatric hospital), providing a stable transition to permanent supportive housing.[3]