System Flaws in Medicaid Eligibility: A Case Study from Michigan

Marie Noon, residing in Brighton, Michigan, encountered significant challenges with the state’s Medicaid system. Despite being eligible, an error in Michigan’s benefits system led to her denial in 2025. Even as a tech-savvy former bank manager, resolving the issue involved months of persistence. The state eventually recognized and corrected the mistake.

Marie relies on eight different medications daily to manage her health. These medications are crucial for conditions like a high heart rate and severe headaches. Over a decade ago, she was diagnosed with adult-onset Still’s disease. This condition causes severe pain, rashes, and fevers. It drastically changed her life from an active lifestyle to debilitating illness.

After losing private insurance, Marie applied for Medicaid. The application was denied due to an IT system error, according to a lawyer who assisted her in overturning the decision. “I can’t afford my medical care. I have to have insurance,” said Marie, who was denied access because the system didn’t recognize her disability status correctly.

Deloitte has been responsible for operating Michigan’s Medicaid eligibility system under significant contracts since 2006. Their technology determines access to benefits like Medicaid across at least 25 states in the U.S. However, investigations indicate discrepancies in these systems, where people with disabilities have been denied due to system errors.

Despite assurances from Deloitte and Michigan’s health department, the error in Marie’s case suggests underlying issues. The state insists they were unaware of systemic issues with the Bridges eligibility system. Marie Noon was eligible through a program for disabled adults who work, but the system failed to acknowledge her disability. This led to an incorrect assessment of her earnings, disqualifying her from benefits.

Disability Rights Michigan played an integral role in helping Marie navigate these errors. They have expressed concerns over potential increases in similar cases due to forthcoming changes in federal law. These adjustments affect the systems managing Medicaid and SNAP benefits under significant reforms enacted in the One Big Beautiful Bill Act.

“I just wanted to give up,” Noon recounted about the ordeal of managing her medication costs without Medicaid.

Such changes in federal law have added pressure on states to update their systems. Deloitte and other firms are contracted for these updates to comply with new requirements. Many restrictions don’t apply to seniors, children, or disabled individuals, but the task places heavy demands on state-managed systems.

Nationwide, similar issues have been evidenced, like in Texas. In one example, a young woman named Lilly Livingston lost Medicaid benefits due to a mistake, impacting her access to vital treatments. Advocacy groups are concerned that these system deficiencies lead to wrongful denial of necessary health coverage.

State audits in Michigan revealed project mismanagement. This led to increased costs in Deloitte contracts initially valued at $70 million, escalating to $124.1 million amid system issues noted in past audits. Despite assurances of capability, Michigan still struggles with the repercussions of these flawed systems.

State and company representatives did not directly address Noon’s individual case, but disability advocacy groups highlight an uptick in wrongful denial cases under similar criteria. The issue extends beyond Michigan, with systems mistakenly enrolling individuals in incorrect programs, like in the case of Texas and issues observed in Michigan with Plan First enrollments.

Following advocacy pressure, state adjustments were made to prevent system errors in handling Medicaid eligibility assessments. Marie appealed her denial and, after persistent efforts, gained approval in January. Yet, this case stresses the wider problems in relying on current state partnership and technology systems for critical public health benefits.