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Transitional Rent Is Here in 2026 — What That Means for Medi-Cal Members

For thousands of Californians living on the edge of homelessness, 2026 marks a turning point. A powerful new Medi-Cal benefit called Transitional Rent is now mandatory for all Medi-Cal managed care plans (MCPs) — and it could mean the difference between a stable home and a cycle of crisis. At Pacific Health Group Community Support Services, we’re here to help members understand this benefit, access the services they need, and build a bridge to lasting housing stability.

What is Transitional Rent, and why does it matter?

Transitional Rent is the newest addition to California’s CalAIM Community Supports program — and it’s the first Community Support to become mandatory for all Medi-Cal managed care plans statewide, effective January 1, 2026. This benefit provides up to six months of rental assistance for eligible Medi-Cal members who are experiencing or at risk of homelessness.

Unlike emergency department visits or nursing home stays that address health crises after they happen, Transitional Rent is a preventive, whole-person care approach. It recognizes what public health researchers have known for years: housing is one of the most powerful social determinants of health. When people lack stable housing, their physical health, mental health, and overall well-being suffer. Chronic conditions go unmanaged, medication adherence drops, and the risk of costly hospitalizations rises.

Transitional Rent directly targets this gap — keeping vulnerable patients housed so they can focus on their health care, not their next place to sleep.

Who qualifies for Transitional Rent?

Eligibility for Transitional Rent is based on three key criteria. A member must:

  1. Meet clinical risk factors — such as having significant behavioral health needs (including qualifying for Specialty Mental Health Services or Drug Medi-Cal services), or having one or more serious chronic physical health conditions, physical disabilities, intellectual disabilities, or developmental disabilities.
  2. Be experiencing or at risk of homelessness — as defined by HUD guidelines, with some California-specific modifications.
  3. Be part of a transitioning population — including individuals exiting a nursing home or long-term care facility, incarceration or carceral settings, the child welfare or foster care system, or interim housing.

This means Transitional Rent can serve a wide range of community members — from youth aging out of foster care to adults leaving institutional care to individuals managing serious mental health or substance use conditions. If you or someone you know fits this profile, this benefit may be available right now.

How Transitional Rent works alongside other Medi-Cal community supports

Transitional Rent doesn’t work in isolation. It’s designed to connect seamlessly with a broader network of services and supports through the CalAIM framework.

The Housing Trio

When a member is approved for Transitional Rent, they are also automatically connected to Medi-Cal’s Housing Trio — three Community Supports designed to help members find, secure, and maintain housing:

  • Housing Transition and Navigation Services — assists with finding and applying for housing
  • Housing Deposits — helps cover security deposits, first and last month’s rent, and utility setup fees
  • Housing Tenancy and Sustaining Services (HTSS) — supports members in maintaining safe, stable tenancy after housing is secured

These supports can be received simultaneously, creating a comprehensive pathway from homelessness to long-term housing stability.

Enhanced Care Management (ECM)

Every member approved for Transitional Rent must also be authorized for మెరుగైన సంరక్షణ నిర్వహణ (ECM). ECM providers assign a dedicated care manager to each member — connecting them to health care, behavioral health, medication management, education, and social services all in one coordinated plan. A community health worker may also be assigned to help navigate community resources and ensure nothing falls through the cracks.

ECM is especially critical for members with complex needs — those managing mental health conditions, coming out of a nursing home, or re-entering the community after incarceration. It ensures that housing stability is paired with the clinical and social support needed to maintain it.

The connection between housing and health outcomes

Stable housing is not a luxury — it is a health care necessity. Research consistently shows that homelessness drives higher rates of emergency department visits, worsens chronic disease management, and increases mortality risk. For Medi-Cal members with behavioral health needs, the absence of stable housing can derail even the best clinical care plan.

Transitional Rent is California’s response to this public health crisis. By funding up to six months of rental assistance through the Medi-Cal system, the state is investing in the social determinants of health that drive long-term outcomes. This is whole-person care in action — addressing not just what happens in a doctor’s office, but everything that affects a patient’s ability to be well.

For youth aging out of foster care, the accessibility of this benefit can prevent a direct pipeline from the child welfare system into homelessness. For adults transitioning out of nursing homes or long-term care, it ensures that discharge doesn’t mean displacement. For individuals managing serious మానసిక ఆరోగ్యం conditions, it removes a massive stressor that often triggers relapse or crisis.

How Pacific Health Group Services treats the whole person

Pacific Health Group Community Support Services is an experienced CalAIM provider delivering ECM and Community Supports (CS) across California. We work directly with Medi-Cal managed care plans and their members to coordinate access to the full range of services.

What we do for members

Our team of dedicated Lead Care Managers, Community Support Service providers, and Community Health Workers provides hands-on support to help members:

  • Understand and access their benefits — including Transitional Rent, ECM, and all available Community Supports (CCS)
  • Complete the referral form and prior authorization process — navigating the paperwork so members don’t have to go it alone
  • Connect to housing, health care, and social services — all coordinated through one point of contact
  • Manage ongoing care — medication adherence, mental health support, appointments, and follow-up

Our member services team is trained to work with the most complex, highest-risk populations — including those transitioning from incarceration, nursing homes, foster care, and institutional settings. We understand that each member’s journey is different, and we meet people where they are.

Why choose Pacific Health Group?

As a trusted community health organization, we bring deep expertise in care management, public health, and the social determinants of health. We partner with Medi-Cal Managed Care Plans to ensure members receive timely, coordinated, and compassionate services — from the first referral through long-term housing stability.

We also understand that navigating Medicare, Medi-Cal, and CalAIM as a member can feel overwhelming. Our goal is to make information clear, services accessible, and the path forward achievable — no matter where someone is starting from.

Not enrolled in Medi-Cal? We can help

If you or someone you know is uninsured and doesn’t yet have Medi-Cal coverage, don’t let that be a barrier. Pacific Health Group can help you apply for Medi-Cal so you can access the services and supports you need. No one should have to navigate the system alone.

Contact Pacific Health Group today

If you or a loved one could benefit from Transitional Rent, Enhanced Care Management, or any of our Community Support Services, our team is ready to help. Whether you’re a member, a provider looking to make a referral, or a community partner, we welcome the conversation.

Call us: (888) 341-4449 or visit us at www.mypacifichealth.com.

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