A KFF Health News investigation has found that Medicaid eligibility computer systems, many operated by Deloitte, have denied or limited coverage for disabled applicants due to technical errors. In Michigan, the state’s “Bridges” system reportedly directed eligible individuals with disabilities into restricted benefit plans or denied them entirely. Deloitte, which holds contracts worth approximately $768 million in Michigan and operates systems in at least 25 states, stated it found no routine system anomalies causing these denials.
The report comes as states prepare to update their Medicaid IT infrastructure to comply with the federal One Big Beautiful Bill Act. The new law requires states to verify employment and other eligibility details for Medicaid recipients. Policy experts and health advocates expressed concern that these additional complexities could further strain administrative systems that manage benefits for approximately 15.5 million disabled Americans.
While state officials in Michigan and Deloitte spokespeople denied the existence of widespread or systemic issues, legal records indicate similar disputes elsewhere. A class-action lawsuit in Tennessee and records from Texas have also highlighted errors in automated eligibility determinations. Deloitte maintains that its systems are built to state specifications and that eligibility changes often stem from factors other than technical malfunctions.