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Health Housing Intersections Research

Using Health Care Savings to Construct Supportive Housing in New York

In 2012, New York State began reforming the way the state delivers and pays for health care for Medicaid beneficiaries in order to offer high-quality health care to low-income individuals at lower cost. The state is using a Section 1115 Medicaid demonstration waiver to adapt its Medicaid system in a way that will increase focus on community-level collaboration and care coordination. This shift is expected to both improve the health of Medicaid beneficiaries and reduce the use of hospitals to deliver basic care. These reforms are estimated to result in a $17.1 billion reduction in Medicaid expenditures over five years. The state is using $8 billion of the anticipated savings to invest in several initiatives that support the health and wellbeing of Medicaid beneficiaries. One of these is theSupportive Housing Initiative implemented by the Medicaid Redesign Team (MRT), a group of stakeholders and experts guiding the state Medicaid reform process. The Initiative, through capital funds and operating subsidies, constructs or rehabilitates supportive housing designed for high Medicaid utilizers.

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