This fall, Medicaid will start paying for some people’s rent for the first time

For the first time, federal Medicaid dollars will start going toward paying some people’s rent.

Some states are preparing to use Medicaid dollars in the hopes that health will improve as housing stabilizes.

The Biden administration has made this possible through a longstanding Medicaid waiver program that allows states to test out new Medicaid ideas.

Oregon is opting to target beneficiaries at risk of becoming homeless, in effect using the funds as a preventive tool to help stave off the devastating economic, physical, and mental harms that come with losing one’s home.

Arizona is planning to target people designated as having a serious mental illness, building off a similar state program that subsidizes rent for about 3,000 Medicaid beneficiaries each year .

Proponents say that by paying for housing, Medicaid spending could ultimately go down over time.

Proponents point to some encouraging research to back the idea.

But other research evidence is less persuasive.

One study found participants had no difference in ER visits, inpatient use, or chronic disease control.