Two years ago, Gov. Gavin Newsom’s administration unveiled a new plan to help solve the homelessness crisis: It began using health care providers, funded through Medi-Cal, to help people get and stay housed.
Now, with President-Elect Donald Trump about to take office, some health care organizations, homeless service providers and other stakeholders throughout California worry the program may fall apart just as it’s starting to make a difference. It’s one of many potential shake ups they’re bracing for as they prepare for a new federal administration unlikely to see eye to eye with the Golden State on many of its social welfare policies.
“It makes us all very nervous,” said John Baackes, outgoing CEO of Medi-Cal provider L.A. Care Health Plan.
CalAIM, launched in 2022, is an expansion of Medi-Cal that allows health insurance to pay for certain things that aren’t considered traditional medical care — such as services to help homeless Californians find and keep housing. Proponents say it’s brought a much-needed infusion of money into the state’s overburdened homeless services system.
But because states aren’t typically allowed to spend Medicaid dollars on those types of services, California had to get special permission from the federal government. That permission, in the form of two waivers, expires at the end of 2026.
That means the fate of CalAIM rests in the hands of the Trump administration, which can decide whether to renew the program, scale it back or change it. Trump has yet to give any indication of what he would do (or even whether this specific California program is on his radar) and most stakeholders agree any changes he…
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