Deloitte-run system denied Medicaid to disabled Michigan woman, report finds
10 reported2 unconfirmed
A KFF Health News investigation found that Michigan’s Medicaid eligibility system, operated by Deloitte under contracts worth roughly $768 million since 2006, has incorrectly directed people with disabilities into skimpier benefits or denied coverage completely. The report details the case of Marie Noon, a 48-year-old disabled Michigan woman who was denied Medicaid last year after losing private insurance, an error her attorney attributed to an IT problem. Noon, who takes eight medications daily for adult-onset Still’s disease, said she paid hundreds of dollars out of pocket for prescriptions and her doctor agreed to fewer visits to avoid bills. Deloitte spokesperson Karen Walsh stated the company found “no system anomalies causing routine denials of Medicaid for people with disabilities,” adding that eligibility systems are owned by states and built to their specifications. Michigan Department of Health and Human Services spokesperson Lynn Sutfin said the state is “not aware of any widespread or systemic issues” within the Bridges system related to disability-based eligibility. The report notes similar problems have occurred in Tennessee, where a federal judge ruled in 2024 that the state violated federal law, and in Texas, according to interviews and state records. The investigation is based on state officials’ statements, emails, government communications, and interviews with attorneys and patients.
What’s reported
Marie Noon, 48 and disabled, was denied Medicaid in Michigan last year after losing private insurance; an attorney said an IT error caused the denial.
Noon was diagnosed with adult-onset Still’s disease, a rare inflammatory arthritis, more than a decade ago.
Deloitte has operated Michigan’s Medicaid eligibility system under contracts worth roughly $768 million since 2006.
At least 25 states have awarded Deloitte contracts to build or run computer systems for safety net benefits.
A KFF Health News investigation found Michigan’s system incorrectly directed people with disabilities into skimpier benefits or denied coverage.
Deloitte spokesperson Karen Walsh said the company found “no system anomalies causing routine denials of Medicaid for people with disabilities.”
Michigan DHHS spokesperson Lynn Sutfin said the state is “not aware of any widespread or systemic issues” in the Bridges system.
A 2010 Michigan auditor general report said the state “did not provide effective project administration” and Deloitte’s original $70 million contract ballooned by $50 million.
Deloitte’s latest Michigan contract is worth $197.4 million and set to expire in 2030.
Nationwide, roughly 15.5 million people on Medicaid have a disability, according to KFF.
Open questions
The source article does not specify how many people in Michigan were affected by the system errors.
It does not state whether Michigan officials have met with Disability Rights Michigan to discuss the underlying problem.
Key figures
Marie Noon, Michigan resident denied Medicaid
Anastassia Kolosova, supervising attorney with Disability Rights Michigan
Karen Walsh, Deloitte spokesperson
Lynn Sutfin, spokesperson for Michigan Department of Health and Human Services
Pamela Herd, University of Michigan professor
Kenneth Smith, Deloitte executive leading national human services division
Sources: NPR
