Arizona Medicaid Zeroes in on Housing to Trim Health Disparities

Arizona’s Medicaid program has gotten the go-ahead for an initiative that seeks to bolster the health of its nearly 37,000 homeless and at-risk residents by alleviating hurdles to housing.

Under a demonstration project approved by the Centers for Medicare & Medicaid Services, Arizona Medicaid will provide up to six months of transitional housing services for individuals moving from insecure environments like homeless shelters and group/foster homes.

State residents without access to stable housing often lack the ability to effectively enroll in health-care services, the CMS said Friday. This lack in health-care access often leads to physical and psychological roadblocks that perpetuate cycles of health inequality, the agency said.

Under the Section 1115 waiver, Arizona also will offer case management, educational outreach, and other housing services.

The agency said the approval of the Arizona initiative builds upon President Joe Biden’s April 2022 executive order, in which he directed federal agencies to expand the scope of Medicaid coverage by “strengthening Medicaid and ACA section 1332 waiver policies to partner with States to develop innovative coverage options, strengthen benefits, and lower costs.”

“We are proud to work with Arizona in this groundbreaking effort,” Health and Human Services Secretary Xavier Becerra said in a statement. “We will continue doing all we can to strengthen Medicaid, and urge states to follow Arizona’s lead.”

Friday’s approval comes after the CMS last month greenlit initiatives from Oregon and Massachusetts, in which both states seek to address health-related social needs with nutritional assistance and housing support programs.