Medicaid-Financed Services in Supportive Housing for High-Need Homeless Beneficiaries: The Business Case

Michael Nardone, Richard Cho and Kathy Moses
The Corporation for Supportive Housing and The Center for Health Care Strategies

June 2012 

Medicaid expansion under the Affordable Care Act (ACA) will provide new insurance coverage to more individuals who are homeless. States could consider leveraging various Medicaid service options, such as health homes, to provide these new beneficiaries with care management services linked to supportive housing. Medicaid-financed care management in supportive housing for high-risk homeless Medicaid beneficiaries could yield a significant ROI from reduced hospitalizations and emergency department use. Growth in Medicaid managed care for these individuals, particularly after 2014, will expand opportunities to capitalize on care management linked to supportive housing with the prospect for sharing associated savings across providers, health plans, and states. This brief outlines the rationale for states to consider designing Medicaid-financed, supportive housing-based care management services to improve care for at-risk beneficiaries while lowering costs associated with avoidable hospitalizations and other crisis services.  

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