America’s largest health insurance provider is giving apartments to the homeless

America’s largest health insurance provider is giving apartments to the homeless as a way to combat the health insurance crisis. Over half a million people are homeless in the US, roughly 1/3 have no shelter, living under bridges or on the street. United Health group INC is America’s largest health care insurer. New executive at the company, Jeffrey Brenner is a former doctor that has worked with low income and homeless for 25 years. Using United Health groups money, Brenner is able to pay for housing and support services for around 60 Medicaid recipients that were formerly homeless. The program is called MyConnections and was originally tested in Phoenix, Milwaukee and Las Vegas. Brenner plans to expand it to 30 markets by early 2020 with a goal of spending more on social interventions to help reduce expenses. This all starts with housing. 

“I don’t think we’ve figured any of this out,” he says. “We’re at a hopeful moment of recognizing how deep the problem is.” 

20% of UnitedHealth’s revenue came from Medicaid members last year. Despite the profit, the patients with complex medical, mental health and social challenges cost the insurance provider more than they receive by Medicaid. Even with the extreme costs, the patients usually receive poor care. 

Source: Bloomberg