Do Medicaid Expenditures Increase After Adults Exit Permanent Supportive Housing?

Area of Science:

• Health Services Research
• Health Economics
• Public Health Policy

Background:

• Homelessness significantly impacts healthcare utilization and costs.
• Permanent supportive housing (PSH) is linked to Medicaid savings, but post-exit effects are unknown.
• Understanding long-term cost implications is crucial for payers like Medicaid.

Purpose of the Study:

• To investigate changes in Medicaid expenditures after individuals exit PSH.
• To determine if healthcare cost savings persist post-program.

Main Methods:

• Linked Medicaid and housing data from Pennsylvania.
• Analysis of 580 adult enrollees' expenditures 12 months pre- and post-PSH exit.
• Adjusted analyses controlling for relevant covariates.

Main Results:

• Estimated monthly Medicaid spending declined by $200.32 in Q1 and $267.63 in Q3 post-exit.
• Findings suggest sustained budgetary benefits for state Medicaid agencies.
• Further research is needed to confirm long-term expenditure reductions and rule out underuse of care.

Conclusions:

• Permanent supportive housing (PSH) may yield lasting financial advantages for Medicaid programs.
• Post-exit spending reductions indicate potential for continued savings beyond program participation.
• Longitudinal studies are necessary to validate sustained benefits and ensure adequate care utilization.