State Releases Payment Methodology For California Medicaid Managed Care Coverage Of Transitional Rent For Behavioral Health Populations, Beginning January 1, 2026

With the new year approaching, the California Medicaid program (Medi-Cal) is taking steps to implement Transitional Rent payments, a mandatory Community Support Service that goes live January 1, 2026. Medicaid members with behavioral health disorders who are experiencing or at risk of homelessness and who meet additional eligibility criteria will be eligible for up to six months of rental assistance. On October 3, 2025, the California Department of Health Care Services (DHCS) released the final Transitional Rent Payment Methodology.

Community Support Services are intended to promote housing stability, ease transitions from institutional settings, support in-home care, provide healthy . . .