System Glitches Deny Medicaid to Eligible Residents

Marie Noon, living in Brighton, Michigan, faced unfair denial of Medicaid in 2025 due to the state’s erroneous benefits system. Despite being tech-savvy, Marie struggled to rectify the situation, a process that took months. Her case underscores challenges within state-administered benefits systems employed by many.

Marie requires eight medications daily for ailments including adult-onset Still’s disease, a rare inflammatory arthritis. This condition significantly altered her life. Once an active mother and bank manager, she became disabled, unable to work for years, enduring long hospital stays.

“I honestly thought I was going to die,” Noon reflected, about her arduous journey through medical issues.

When Michigan denied her Medicaid post-insurance loss, it was a financial blow. Noon’s experience highlights persistent issues in Deloitte’s computer systems used to manage Medicaid eligibility, affecting multiple states.

Deloitte’s involvement dates back to 2006 in Michigan, with contracts valued at $768 million. Many states awarded similar contracts, yet systemic errors, such as wrong eligibility assessment, persist, leading to class-action suits and state investigations.

Deloitte stands as a major player in handling state contracts. Their officials argue that eligibility systems are state-run and directed, placing ultimate responsibility on government agencies. Despite this, technology errors significantly impact residents requiring Medicaid and SNAP benefits.

Legal professionals, like Anastassia Kolosova, report multiple wrongful denials of coverage and foresee increased issues due to upcoming federal law-driven changes to Medicaid systems. Such changes are expected to burden existing systems further.

Without Medicaid, Noon relied on costly out-of-pocket payments for treatments. The financial unpredictability and stress were tremendous, necessitating fewer doctor visits to manage expenses.

Marie Noon’s case is not isolated. Across Texas and Michigan, similar disruptions to benefits were documented. In Texas, an error removed Lilly Livingston, who has Down syndrome, from Medicaid despite clear qualifying criteria. Cases like these underscore the fragility of current systems managing critical welfare benefits.

The 2025 tax and spending law, emphasizing Medicaid reassessment, led to system updates that critics fear will strip benefits from eligible participants due to technical mismanagement. This places additional strain on stakeholders, complicating access to essential healthcare support.

Deloitte contends their technological solutions are executed per state mandates, but reported errors force eligible people out of necessary programs. Given the extent of the contracts and reliance on intricate systems, advocates call for comprehensive solutions to prevent future exclusions and errors.