Marie Noon, living in Brighton, Michigan, faced a significant barrier when the state denied her Medicaid coverage in 2025 due to a technical error in the benefits system. Despite her eligibility, it took months for the error to be corrected. Noon, a former bank manager, found the process so challenging that she considered giving up numerous times, even with her technology skills.
Noon manages her health with eight daily medications. These medications are crucial, controlling her heart rate, preventing headaches, and managing fluid retention. She was diagnosed over a decade ago with adult-onset Still’s disease, an inflammatory arthritis causing intense pain, rashes, and fevers, drastically altering her life. She transitioned from an active lifestyle to being incapacitated by pain, unable to work for eight years, and frequently hospitalized.
She lost private insurance and needed Medicaid after the state denied her coverage based on an information technology fault. Noon’s attorney confirmed the error. Without insurance, affording necessary medical care was impossible. After recovering enough to work part-time, the Medicaid denial caught her off-guard.
I honestly thought I was going to die,Noon expressed about her ordeal.
Deloitte has been Michigan’s Medicaid system contractor since 2006 under contracts worth approximately $768 million. Despite this, significant system errors led to incorrect benefits allocation, denying or limiting care for those with disabilities. Such issues are not limited to Michigan; similar cases in Tennessee and Texas have come to light, revealing systemic problems in these states as well.
A comprehensive investigation by KFF Health News, which included state official statements, accessed emails, and legal interviews, underscores these system flaws. Deloitte defended its system, stating it lacks anomalies that routinely deny Medicaid for disabled individuals. The company’s systems follow each state’s specific requirements.
Lynn Sutfin from Michigan’s Department of Health and Human Services reported no known widespread issues with Bridges, Michigan’s eligibility system, related to disability-based eligibility. Deloitte’s contracts include system maintenance and updates, while Michigan’s aging systems face pressure to meet new Medicaid program changes under the One Big Beautiful Bill Act signed by President Trump.
Approximately 15.5 million Medicaid recipients nationwide have disabilities, with administrative system issues impacting everyone when overloaded. Pamela Herd of the University of Michigan noted the strain on these systems, calling for effective operation to manage demands efficiently.
Though eligible, Noon was denied Medicaid due to system failure in recognizing her disability. Incorrect processing labeled her ineligible based on faulty income data while the system missed key disability information. Attorney Anastassia Kolosova, who supported Noon, acknowledged this serious systemic flaw.
The Medicaid program, which covers about 67 million, depends on firms like Deloitte to assess qualification. Historical errors by Deloitte’s technology have cut eligible individuals off benefits. Deloitte maintains that state-run systems govern operations.
Under pressure to update for new federal law requirements, state agencies’ computer systems could strip millions from Medicaid and SNAP by 2034. New federal law adjustments affect people with disabilities like Noon less, yet the changes still complicate benefit management, risking systemic strain on agencies.
In Tennessee, a class-action lawsuit highlighted similar issues around Deloitte’s Medicaid systems. The state’s system was found unreliable in testing eligibility for disability categories according to a 2024 federal court ruling.
Michigan’s history with Deloitte dates back to a $70 million contract in 2006, increasing by $50 million due to mismanaged project oversight, according to a 2010 state audit. The latest $197.4 million contract continues till 2030.
Marie Noon began her Medicaid application in August, but was denied by September due to incorrect income information and failure to register her disability, causing immense personal and financial strain. Despite repeated state reassurance, the system failures persist.
Individuals like Noon depend on Medicaid, counting specific income allowances for disabled workers, but errors miscalculate these earnings. Once informed, Michigan health officials attempted correcting systemic flaws that also misclassified Medicaid enrollees.
In recent years, others like Lilly Livingston in Texas suffered from coverage errors by Deloitte systems, pointing to a broader trend across states where eligibility system failures place heavy burdens on individuals reliant on health services.
Mistaken program enrollments have broad repercussions. In Michigan, limited coverage programs displaced comprehensive Medicaid plans, leaving essential health services out. This forced reliance on costly out-of-pocket expenses during coverage denial, conflicting with state assurances of system accuracy.
Changes to Michigan’s system were cited following advocacy group pressures but state denials stated these were not error corrections, despite records showing necessary system updates initiated.
Despite assurances, Noon’s Medicaid issues persisted, entangling others in slow and inaccurate eligibility processes, exemplifying system strain under antiquated management and ongoing regulatory demands.