L.A. Care, Health Net commit $114M to Los Angeles County's effort to support the unhoused

L.A. Care Health Plan and Health Net will invest $114 million over five years to help address the homelessness crisis in Los Angeles County. 

The funding will be used to help the county secure housing units in the private rental market for people with rental vouchers experiencing homelessness. It will also help the county identify daily living needs among unhoused people through field assessments and connect them with caregiver help. Part of the funding will also be used for a robust evaluation of the program to inform future policy and investments.

“Housing is critical for good health. This collaboration will help address housing inequities, which have resulted in health inequities, and it will make the voucher system more effective,” John Baackes, L.A. Care CEO, said in an announcement. 

Approximately 69,000 LA residents are currently experiencing homelessness, with the city declaring a state of emergency at the start of this year. L.A. Care serves more than 2.8 million members in LA County, while Health Net serves nearly 3 million members in the state overall.

Despite yearly funding to support housing vouchers, about 65% of people issued a voucher are able to lease a unit, per a recent study. It also takes an average of 122 days to find a rental unit in the city, with many households needing longer than half a year. This crisis is driven in part by illegal discrimination against voucher holders, most of whom are people of color. 

"Health Net is proud to take part in this critical initiative, which will continue to increase access to housing for people experiencing homelessness," Martha Santana-Chin, Medi-Cal president at Health Net, said in a press release. "Together we aim to improve access to whole-person care services for vulnerable Angelenos.”

The funding is the result of California’s Housing and Homelessness Incentive Program, a voluntary incentive program allowing Medi-Cal managed care plans to earn incentive funds for making progress on the issues. L.A. Care and Health Net both serve Medi-Cal beneficiaries in the county and are collaborating to meet funding guidelines and maximize impact, the plans said in a press release.