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AB-804

Medi-Cal: housing support services.

Author: Stefani, Catherine · Died · AB

View on LegInfo →

This bill is projected to:
ReduceHealth shortfall 42.7%42.3%
ReduceIncome & Work shortfall 12.4%12.1%
ReduceEquity shortfall 26.4%25.9%
ReduceSocial Cohesion shortfall 63.0%62.2%

Fiscal Impact

50,000,000 dollars per year300,000,000 dollars per year(est. 150,000,000 dollars per year)

The bill makes housing support services a covered Medi-Cal benefit contingent on legislative appropriation. The current CalAIM community supports for housing are estimated to cost hundreds of millions annually, with federal matching funds. Expanding this to a full benefit would likely increase state General Fund costs, potentially in the range of tens to hundreds of millions annually, depending on the scope of services, number of eligible beneficiaries, and federal financial participation. The Legislative Analyst's Office (LAO) would typically provide a detailed fiscal estimate once the bill progresses and more specifics on implementation and caseload are available. Without a specific appropriation amount or caseload estimate in the bill, a precise fiscal estimate is not possible at this stage. However, it is clear there will be significant state costs, partially offset by federal matching funds and potential long-term healthcare cost savings.; This bill would create a new Medi-Cal benefit for housing support services, contingent on legislative appropriation and federal approval. The fiscal impact would be significant, likely in the hundreds of millions to low billions of dollars annually, depending on the scope of services, the number of eligible beneficiaries, and the federal matching funds received. The current CalAIM community supports for housing services are already substantial, and this bill would formalize and potentially expand that funding stream. The Legislative Analyst's Office (LAO) would typically provide a detailed estimate once the bill progresses, but comparable programs and the scale of California's homeless population suggest a high cost. For example, the state's current efforts to address homelessness already involve billions in state and local funding. Making these services a Medi-Cal benefit would shift some of these costs to the federal government (with federal matching funds) but would still require substantial state general fund appropriations.; The bill makes housing support services a Medi-Cal benefit 'subject to an appropriation by the Legislature' and 'to the extent that any necessary federal approvals are obtained, and federal financial participation is available.' This implies significant state and federal costs. Based on existing CalAIM community support expenditures for housing and the potential for expanded eligibility, annual costs could range from tens to hundreds of millions. For instance, California's Housing and Disability Advocacy Program (HDAP) costs tens of millions annually, and expanding similar services through Medi-Cal would likely exceed this. The LAO has previously estimated CalAIM housing supports to cost hundreds of millions. The exact cost will depend on the scope of services, number of eligible beneficiaries, and federal matching funds. The range provided reflects the uncertainty around these variables.; The bill makes housing support services a covered Medi-Cal benefit, subject to legislative appropriation and federal approval. The costs would primarily be for providing housing transition navigation services, housing deposits, and housing tenancy sustaining services to eligible Medi-Cal beneficiaries experiencing or at risk of homelessness. The Legislative Analyst's Office (LAO) has previously estimated costs for similar housing support programs under CalAIM to be in the hundreds of millions annually, depending on the scope and uptake. Given this bill expands these from optional community supports to a core benefit, the costs could be substantial. The range reflects uncertainty in federal matching funds, beneficiary uptake, and the specific scope of services ultimately approved and funded. These costs would be shared between the state General Fund and federal Medicaid funds.

Category Impact Analysis

Healthsocial
Helps↑0.4 p.p. avg shortfall
Life Expectancy Shortfall: 32.5% → 32.1% (↑0.3 p.p.)Healthcare Affordability: 53.0% → 52.5% (↑0.5 p.p.)
Income & Worksocial
Helps↑0.2 p.p. avg shortfall
Supplemental Poverty Rate: 15.4% → 15.1% (↑0.3 p.p.)U-6 Unemployment Rate: 9.3% → 9.2% (↑0.1 p.p.)
Equitysocial
Helps↑0.6 p.p. avg shortfall
Racial Equity Index: 40.0% → 39.0% (↑1.0 p.p.)Gender Pay Gap: 12.9% → 12.8% (↑0.1 p.p.)
Social Cohesionsocial
Helps↑0.8 p.p. avg shortfall
Income Inequality: 100.0% → 100.0% (↑0.1 p.p.)Life Dissatisfaction: 26.0% → 24.5% (↑1.5 p.p.)
CalDoughnut Score