States are paying contractors such as Deloitte, Accenture, and Optum millions of dollars to help them comply with the One Big Beautiful Bill Act — a law that will strip safety-net health and food benefits from millions.
State governments rely on such companies to design and operate computer systems that assess whether low-income people qualify for Medicaid or food aid through the Supplemental Nutrition Assistance Program, commonly known as food stamps. Those state systems have a history of errors that can cut off benefits to eligible people, a ϳԹ News investigation showed.
States are now racing to update their eligibility systems to adhere to President Donald Trump’s sweeping tax-and-spending law. The changes will add red tape and restrictions. They are coming at a steep price ― both in the cost to taxpayers and coverage losses ― according to state documents obtained by ϳԹ News and interviews.
The documents showgovernment agencieswill spend millionsto saveconsiderablymorebyremovingpeople fromhealth benefits.While statessigneligibility system contracts with companiesandwork with them to manageupdates, the federal governmentfootsmost of the bill.
The law’s Medicaid policies will causetobecome uninsuredby 2034, according to the nonpartisan Congressional Budget Office.Roughlywill loseaccess tomonthly cashassistanceforfood, including those with children.
In five statesalone,for state officialsand reviewed by ϳԹ Newsshow that changeswill cost at least $45.6millioncombined.
The lawrequires most statestotieMedicaid coveragefor some adultstohavingajob,andimposes other restrictions that will make it harder forpeoplewith low incomesto stay enrolled.SNAP restrictions began to take effect in 2025. Major Medicaid provisionsbeginlater this year.
Documentsprepared by consulting company Deloitteestimatethat a pair ofcomputer systemchangesforMedicaid work requirementsin Wisconsinwill. Two other changesrelatedto the state’s SNAP program will cost an additional $4.2million, according to the documents, which for the Wisconsin Department of Health Services.
In Iowa, changes to its Medicaid system are expected to cost at least $20 million, , a consulting company thatoperatesthe state’seligibility system.
Optum—whichoperatesthe platform Vermont residents usefor Medicaid and marketplacehealthplans under the Affordable Care Act—toevaluate andincorporatenewhealthcoverage restrictions.
Initial changes in Kentucky, which has had a contract with Deloitte since 2012,. And in Illinois,will cost at least $12 million.
States Pay Deloitte, Others Millions To Comply With Trump Law To Cut Medicaid Rolls
The One Big Beautiful Bill Act will add red tape and restrictions for those seeking Medicaid and SNAP benefits. And the costs to update computer systems that determine eligibility for those programs will be steep.
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