An investigation by KFF Health News has shone a rather unflattering light on the missteps by Deloitte in managing Medicaid eligibility systems across several states, including Texas. Deloitte, with its boasts of specialized systems for streamlining Medicaid eligibility, holds contracts with 25 states totaling at least $5 billion, as per the news release. However, the intricacies of these systems have led to concerns about the accuracy of enrollments and the potential harm to some of the country's poorest citizens.
Steve Catanese, president of Service Employees International Union Local 668 in Pennsylvania, portrayed the gravity of these system errors, "Are you hungry? Wait. You sick? Wait,” - highlighting the potential life-or-death stakes when dealing with healthcare benefits. Deloitte's Kenneth Smith defended their position in a statement, distancing Deloitte from the errors by emphasizing the state ownership of the technology and policies. Yet, wide-ranging issues with the systems have been detailed in court documents and state audits, including a Tennessee federal lawsuit, which exposed flaws such as incorrect addresses and prolonged insurance lapses for beneficiaries like DiJuana Davis, a mother whose surgeries were cancelled as a result of these glitches.
The National Health Law Program has branded these failings as "ongoing and nationwide" in a complaint to the Federal Trade Commission, pushing for an investigation into what they consider "unfair and deceptive trade practices." The repercussions of these errors are coming to light particularly now as states are reassessing millions of Medicaid enrollments post-pandemic, which could potentially disenroll people who are still eligible but caught up in system malfunctions. Reporting by KFF Health News indicates an alarmingly high rate of disenrollment with about 22.8 million people removed from Medicaid rolls as of June 4, 2024, raising concerns about the eligibility checks' accuracy.
States have depended on Deloitte for the operation of complex systems, but success stories seem to be in short supply. Problems with Deloitte's systems led to tens of thousands of erroneous letters sent out in Kentucky, a botched rollout in Rhode Island, and significant backlogs and defects. Not only are these systems rife with technical problems, but the fixes are also far from swift, requiring laborious manual corrections, as experienced by caseworkers like Bianca Garcia in Arkansas. "It had a lot of bugs," Garcia told reporters, accounting instances where glitches caused enrollees to miss communications and consequently lose benefits.
The story also touches on Colorado's struggles with inaccurate enrollee notices and a flustering $5 million overpayment to Deloitte due to their flawed system design. Deloitte's Smith touted their relentless efforts to resolve such issues, but for families needing coverage, like Danae Davison in Colorado, these assurances provide little solace. Davison faced confusing notices and had to fight to maintain Medicaid benefits for her daughter, underscoring the everyday, real-world consequences of system pitfalls. Deloitte has chosen to remain silent on individual cases while standing by their technology, even as errors persist and grave concerns from beneficiaries and state workers alike continue to emerge.
