IT Errors in Medicaid Systems Cause Coverage Denials for Disabled People

Marie Noon, diagnosed with adult-onset Still's disease, faced Medicaid denial due to system errors, paying out of pocket.
Deloitte-run systems denied Medicaid to disabled people. New laws could make it worse

Michigan Woman’s Struggle Highlights Medicaid System Flaws

Marie Noon, a resident of Michigan, relies on a daily regimen of eight medications to manage her health. Diagnosed over a decade ago with adult-onset Still’s disease, she faces debilitating symptoms that have severely impacted her life. Despite her condition, an IT error led to the denial of her Medicaid application when she lost her private insurance.

The error in Michigan’s Medicaid system, run by global consulting firm Deloitte, mistakenly categorized her income, disqualifying her from benefits she was eligible for. Deloitte has been managing Michigan’s Medicaid eligibility system since 2006, with contracts totaling around $768 million. This situation is not unique to Michigan; similar issues have been reported in Tennessee and Texas.

Deloitte maintains that there are no systemic anomalies causing these errors. According to Karen Walsh, a spokesperson for Deloitte, “All of the eligibility systems we support are owned by the states and built to their unique specifications.” However, advocates and experts fear that system overloads and upcoming federal law changes could exacerbate these issues.

Medicaid serves approximately 67 million low-income individuals or those with disabilities. Many states use companies like Deloitte to manage the complex systems determining eligibility for this program. In Michigan, the system failed to recognize Noon’s disability status, resulting in her wrongful denial of benefits.

Anastassia Kolosova, a supervising attorney with Disability Rights Michigan, helped Noon navigate the appeals process. Kolosova expressed concerns about the system’s ability to handle future demands, stating, “I’m really worried about more people falling through the cracks.”

Noon had to pay hundreds out of pocket for her medications during the appeals process, creating financial strain and uncertainty. She noted the constant stress of not knowing how much her medication would cost each month.

“A Long Battle for Justice”

Noon’s battle with the state highlights the broader issue of system errors in Medicaid eligibility processing. Similar cases in Texas involved wrongful enrollment in programs with limited benefits, impacting access to necessary health services. In Michigan, systemic errors led to a decline in Medicaid enrollment for people with disabilities.

The Michigan Department of Health and Human Services, in response to these issues, has made system updates to prevent such errors. However, the system remains pressured by the demands of federal law changes set to take effect soon.

For Noon, the struggle to secure Medicaid benefits was lengthy and fraught with challenges. After months of appeals and financial burdens, she finally received approval in January. “I literally cried,” Noon said, reflecting on the emotional toll of the process.

Advocates continue to push for more reliable systems to ensure that eligible individuals receive the benefits they need without undue hardship.

KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF.

Copyright 2026 KFF Health News


Read More Michigan News

Share the Post:

Subscribe

Related Posts