Some Arizona Medicaid recipients will soon be eligible for a new benefit: Housing

Some members of Arizona’s version of Medicaid will soon be eligible for a new benefit: housing. The Arizona Health Care Cost Containment System, or AHCCCS, has launched a new program that it hopes will address homelessness in certain at-risk populations.

It's called the Housing and Health Opportunities program, or H2O. And the goal is to expand housing services for AHCCCS members with a serious mental illness designation and those with chronic health conditions.

"So psychiatry, medication, counseling, case management, those are all covered benefits in our mental health service package here in the state," said Carmen Heredia, the agency's director. "We're adding housing to that. So think of us as a health insurance company where now the health insurance is going to cover a housing piece to it. And we’re covering different things."

Heredia says H2O will cover transitional housing and home modifications as well as coaching around landlord negotiations and rights.

Heredia said by providing housing or housing supports, as well as the mental health benefits provided by AHCCCS, healthier outcomes can be achieved.

"We're starting the program with a focus on the seriously mentally ill and those with chronic health conditions. So if there is eligibility in those categories, then this is a new opportunity, first of its kind in the nation and first time in Arizona to be offered this way," Heredia said.

By marrying health care and housing, Heredia hopes that the H2O program will better meet the physical and mental health needs of participants.

Through the program, eligible individuals can receive:

• Transitional housing assistance for up to 6 months.
• Housing transition and move-in supports such as activation and back payments for utility services and housing deposits.
• Medically necessary home accessibility modifications. 
• Pre-tenancy and tenancy sustaining services.
• Outreach and education including connection to other benefits programs.

The program is funded through a combination of state and federal resources.