'I just wanted to give up': Disabled patients face Medicaid denials from IT errors

Marie Noon at her home in Brighton, Michigan, with her dog, Ziggy. Despite being eligible for Medicaid, Marie was denied coverage in 2025 because of an error with the state's benefits system. It took months of pushback before the state reversed its mistake. Even as a "tech-savvy" former bank manager, Marie says, she wanted to give up several times along the way. Kate Wells for KFF Health News hide caption

Marie Noon takes eight medications a day. One keeps her heart rate from spiking to avoid a stroke. One prevents debilitating headaches. Another ensures she doesn't retain excess fluid.

More than a decade ago, Noon said, she was diagnosed with adult-onset Still's disease, a rare type of inflammatory arthritis that can cause rashes, debilitating pain, and fevers. The disease upended her life.

She had been living a typical suburban life in Michigan, shuttling her two kids to activities like cheerleading, choir practice, and track. She was active in the PTA. She managed a bank.

She went from that to crawling to the bathroom because she was in so much pain, "just crying all day long" from being so sick.

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Noon, who is 48 and disabled, said she couldn't work for eight years — a time marked by hospital stays that stretched for weeks.

"I honestly thought I was going to die," Noon said.

So it was a shock when Michigan denied her application for Medicaid benefits last year after she lost private insurance. Worse yet, it came down to an IT error, according to an attorney who helped Noon overturn the denial.

"I can't afford my medical care. I have to have insurance," said Noon, who has returned to working.

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Deloitte, a multibillion-dollar global consulting firm, has operated Michigan's Medicaid eligibility system under contracts worth roughly $768 million since 2006, according to contracts reviewed by KFF Health News. Nationwide, Deloitte dominates this important slice of government business: At least 25 states have awarded the company contracts to build or run computer systems that control access to safety net benefits such as Medicaid.

Michigan's system has incorrectly directed people with disabilities into skimpier benefits that cover limited care or denied coverage completely, a KFF Health News investigation found. Similar problems were at the center of a class-action suit in Tennessee , court documents show , and have occurred in Texas, according to interviews and state records.

This KFF Health News investigation is based on statements from state officials, emails obtained through public records requests, state government communications sent to Medicaid enrollees and applicants, and interviews with attorneys and patients or their caregivers.

In an emailed statement, Deloitte spokesperson Karen Walsh said it found "no system anomalies causing routine denials of Medicaid for people with disabilities."

"There are many reasons why someone may no longer be eligible for a benefit they once received or believe they deserve," Walsh said. "All of the eligibility systems we support are owned by the states and built to their unique specifications. We will continue to work at the direction of our state clients."

Lynn Sutfin, spokesperson for Michigan's Department of Health and Human Services, said it "is not aware of any widespread or systemic issues" within Bridges, Michigan's eligibility system for Medicaid, SNAP, and other benefits, "related to disability‑based eligibility pathways."

Since 2006, Deloitte's contracts with the state have said the company is responsible for development, implementation, maintenance, operations, and enhancements to the Michigan system.

Computer system problems foreshadow trouble as states prepare to roll out the most significant and complicated changes to their Medicaid programs in years. Those changes, dictated by President Donald Trump's landmark One Big Beautiful Bill Act, have states rushing to update their Medicaid computer systems to verify details such as employment.

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Nationwide, roughly 15.5 million people on Medicaid have a disability, according to KFF.

"When these administrative systems get overloaded, everyone gets impacted," said Pamela Herd, a University of Michigan professor who researches bureaucratic obstacles to accessing government benefits. "The systems are going to be really, really strained."

In Michigan, Noon was eligible for Medicaid through a program that provides coverage to disabled adults who work. But the state's computer system didn't register that she is disabled and said she earned too much to qualify, according to documents reviewed by KFF Health News and interviews with Noon and Anastassia Kolosova, a disability rights attorney who helped her.

Anastassia Kolosova, a supervising attorney with Disability Rights Michigan, helped Marie Noon navigate the complicated process to obtain safety net health insurance through Medicaid. Kolosova says she has seen multiple wrongful coverage denials and fears problems will soon get worse because of changes required by federal law. "I'm really worried about more people falling through the cracks," she says, because the state's benefits system "is going to be even more overburdened than it is right now." Kate Wells for KFF Health News hide caption

Without Medicaid coverage, Noon paid hundreds of dollars out-of-pocket for prescriptions, after scrounging for discount coupons. She takes some of the drugs twice a day.

Without them, "I'm toast," she said. It was stressful "not knowing if my medicine's going to be $50 or $500 this month, because it changes constantly."

Noon said her doctor agreed to fewer visits to avoid medical bills.

"It was kind of a nightmare," Noon said.

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"I just wanted to give up"

Medicaid, a safety net health program jointly run by the federal government and states, covers roughly 67 million people with low incomes or disabilities. State governments rely on companies such as Deloitte to design and operate computer systems that assess whether people qualify for Medicaid or food aid through the Supplemental Nutrition Assistance Program, commonly known as food stamps.

Deloitte-run technology has a history of errors that deprive eligible people of benefits, earlier KFF Health News investigations have shown . As reported previously, Kenneth Smith, a Deloitte executive who leads its national human services division, said Medicaid eligibility technology is state-owned and agencies "direct their operation" and "make decisions about the policies and processes that they implement."

"They're not Deloitte systems," he said, noting Deloitte is one player among many who together administer Medicaid benefits.

States are under immense pressure to update their eligibility systems on a tight schedule to adhere to requirements in the Republicans' sweeping 2025 tax and spending law. Companies including Deloitte, Accenture, and Optum are being paid millions in taxpayer funds to make the changes, which are projected to strip Medicaid from roughly 7.5 million people and SNAP from 2.4 million people by 2034.

Many coverage restrictions in the new federal law don't apply to seniors, children, or people who are disabled, such as Noon. Nonetheless, the law's demands on state agencies and the computer systems they oversee will disrupt benefits, advocates for Medicaid enrollees and other healthcare experts said in interviews.

The same systems also need to correctly classify why someone is eligible for Medicaid — and therefore which rules and restrictions apply.

The law's SNAP restrictions began to take effect in 2025, and major Medicaid provisions begin later this year, generally after the midterm elections.

Kolosova is a supervising attorney with Disability Rights Michigan, a legal advocacy organization for people with disabilities. She said she has been unable to get a meeting with Michigan officials to understand the underlying problem that deprived Noon of health coverage.

State records show Deloitte has held contracts for at least 14 years for Bridges. In its attempts to secure more business, the company often cites its nationwide footprint in Medicaid operations.

"Deloitte understands Bridges," and its history in Michigan makes the company "the ideal vendor," the firm said in its bid documents . Given Deloitte's work on similar systems in 31 other states, the firm said , "Michigan benefits from our technical expertise drawn from across the nation."

But advocates who work with people with disabilities say Michigan's computer system has failed to recognize when certain adults should receive Medicaid benefits.

Problems aren't unique to the Great Lakes State. Medicaid beneficiaries who brought a class-action lawsuit against Tennessee in 2020 said the state's Deloitte-built system "does not reliably test for eligibility" for several categories of people with disabilities. The firm's contract in Tennessee is worth $1.12 billion over a decade.

A federal judge in 2024 sided with the Medicaid beneficiaries , ruling that Tennessee violated federal law and the U.S. Constitution. The lawsuit does not name Deloitte as a defendant.

In Michigan, a 2010 report from the state's Office of the Auditor General said government agencies "did not provide effective project administration" and failed to ensure that the state could "independently maintain and operate Bridges" because "the contractor did not transfer knowledge and skills" to state officials, according to the audit.

The auditor's report said that, as a result, Deloitte's original contract — valued at roughly $70 million — ballooned by $50 million over the initial cost, a 71% increase. State records show Michigan would go on to add millions more, bumping the cost of Deloitte's initial contract to $124.1 million.

The audit said maintaining the contract would result "in significant additional costs."