Insurance giant UnitedHealthcare is launching an initiative in Texas to provide supportive housing to its members who don't have a stable place to live, according to the Texas Tribune.
UnitedHealthcare's pilot program will start off by serving about 20 people. It has already identified nearly 300 of its members in Austin and more than 3,000 in Houston who are either homeless or using supportive housing services, according to the report.
The insurer is rolling out the initiative under the assumption that housing will help keep vulnerable patients healthy, out of the hospital and ultimately lower healthcare costs.
Nationally, insurance companies that receive state Medicaid funds are limited in how they can invest in housing. For instance, in 2013, the Obama administration rejected a request from the New York state health department for matching funds to help Medicaid enrollees pay for housing. Now, UnitedHealthcare is tapping into its own funds to make the investment.
UnitedHealthcare says its contracts with homeless coalitions in Houston and Austin will allow it to find subsidized housing and help coordinate members' healthcare. In some cases, the health insurer will pay for "barrier busters" to help move homeless members into apartments or purchase necessities, such as furniture, according to the report.
Experts say UnitedHealthcare's initiative aligns with the shift in U.S. healthcare policy to pay medical providers on a value-based reimbursement model. This shift is widening the notion of what services are considered healthcare, and could lead policymakers to better address poverty, nutrition, housing and other social determinants of health, according to the report.