AHCCCS Launches Innovative Program Integrating Housing and Health Care

(PHOENIX – Oct. 1, 2024) – The Arizona Health Care Cost Containment System (AHCCCS) has officially launched its Housing and Health Opportunities (H2O) program. This groundbreaking initiative aims to expand housing services for specific AHCCCS members experiencing homelessness.

Starting October 1, the H2O program will focus on AHCCCS members with a Serious Mental Illness designation who are also experiencing homelessness or housing instability and have an identified chronic health condition or experienced justice involvement within 90 days.

“Housing is health care, and stable housing is essential for improving health outcomes,” said Carmen Heredia, AHCCCS director. “By focusing on housing support for AHCCCS members living with a Serious Mental Illness, we help ensure the basic needs of our most vulnerable members are being met.”

Unlike many traditional housing programs, the H2O program integrates health care services with housing support. This holistic approach addresses both the physical and mental health needs of participants.

With this integrated model, the H2O program aims to reduce the overall cost of care by decreasing the use of emergency services, hospitalizations and crisis interventions, and increasing primary care and preventive health services.

“The H2O program represents a forward-thinking model that other states may look to replicate,” said Liz da Costa, AHCCCS housing administrator. “AHCCCS is aiming to create a more integrated and effective system for addressing homelessness and health care needs.”

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 AHCCCS Housing and Health Opportunities (H2O) program is funded through a combination of state and federal resources. This funding structure allows the program to provide short term rental assistance and supportive services to eligible members. The program operates under a federal waiver and demonstration project, which allows for innovative approaches and flexibility in service delivery. This can include unique interventions and support mechanisms not typically available in standard housing programs.

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About AHCCCS:

Founded in 1982, the Arizona Health Care Cost Containment System (AHCCCS) is Arizona’s Medicaid agency that offers health care programs to serve Arizona residents. Built on a system of competition and choice, AHCCCS operates under an integrated managed care model, through a Research and Demonstration 1115 Waiver. Contracted health plans coordinate and pay for physical and behavioral health care services delivered by more than 93,000 health care providers to more than 2 million Arizonans.