Errors in Deloitte-Run Medicaid Systems Can Cost Millions and Take Years To Fix - KFF Health News

Twenty-five states have awarded Deloitte contracts for eligibility systems, giving the company a stronghold in a lucrative segment of the government benefits business.

Problems and delays can extend beyond Medicaid because some state systems assess eligibility for other safety-net programs.

The federal government — that is, its taxpayers — covers 90% of states’ costs to develop and implement state Medicaid eligibility systems.

Two advocacy groups sued Florida in federal court, alleging tens of thousands of people were losing coverage without proper warning.

Florida previously gave moms two months of Medicaid coverage after giving birth.

Deloitte is not a named defendant in the lawsuit, but the company was called to testify about its role in operating Florida ’s eligibility system.

Deloitte ’s maximum compensation for such change orders rose to $417 million under a 2023 contract amendment, up from $103.6 million four years earlier .

Tennessee 's $823 million contract shows that the budget for changes outside the contract's original scope increased by hundreds of millions of dollars .