Medicaid Archives - Ñî¹óåú´«Ã½Ò•îl Health News /topics/medicaid/ Ñî¹óåú´«Ã½Ò•îl Health News produces in-depth journalism on health issues and is a core operating program of KFF. Thu, 06 Aug 2026 22:17:21 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.7 /wp-content/uploads/sites/8/2023/04/kffhealthnews-icon.png?w=32 Medicaid Archives - Ñî¹óåú´«Ã½Ò•îl Health News /topics/medicaid/ 32 32 161476233 The Return of ‘Medicare for All’ /podcast/what-the-health-458-michigan-el-sayed-midterms-medicare-for-all-august-6-2026/ Thu, 06 Aug 2026 19:23:58 +0000 /?p=2269812&post_type=podcast&preview_id=2269812 The Host
Julie Rovner photo
Julie Rovner Ñî¹óåú´«Ã½Ò•îl Health News Read Julie's stories. Julie Rovner is chief Washington correspondent and host of Ñî¹óåú´«Ã½Ò•îl Health News’ weekly health policy news podcast, "What the Health?" A noted expert on health policy issues, Julie is the author of the critically praised reference book "Health Care Politics and Policy A to Z," now in its third edition.

Democratic primary voters in Michigan chose former Detroit public health director Abdul El-Sayed as their Senate nominee this week. El-Sayed is one of several high-profile candidates around the country who have been pushing “Medicare for All,” again elevating the issue, at a time when millions of Americans are losing their health coverage because of high costs.

Meanwhile, the Senate this week confirmed Erica Schwartz to lead the Centers for Disease Control and Prevention, which has been without a permanent leader for almost a year. But it remains unclear whether her support for childhood vaccinations will run afoul of her boss, Health and Human Services Secretary Robert F. Kennedy Jr.

This week’s panelists are Julie Rovner of Ñî¹óåú´«Ã½Ò•îl Health News, Joanne Kenen of the Johns Hopkins Bloomberg School of Public Health and Politico Magazine, Alice Miranda Ollstein of Politico, and Amanda Seitz of Ñî¹óåú´«Ã½Ò•îl Health News.

Panelists

Joanne Kenen photo
Joanne Kenen Johns Hopkins University and Politico
Alice Miranda Ollstein photo
Alice Miranda Ollstein Politico
Amanda Seitz photo
Amanda Seitz Ñî¹óåú´«Ã½Ò•îl Health News Read Amanda's stories.

Among the takeaways from this week’s episode:

  • El-Sayed’s primary victory in Michigan means a vocal supporter of Medicare for All will be on the ballot this fall. Progressives again are rallying behind universal healthcare as costs spike and more people lose their coverage — although there are few details so far to explain how they would implement such a policy.
  • New polling shows more people are experiencing “job lock” because of limited options to obtain healthcare coverage outside employer-sponsored insurance. Meanwhile, more hospitals are reporting a sharp rise in the number of uninsured and in the costs to cover them.
  • A federal judge recently declined to halt the implementation of Medicaid work requirements while considering a case brought by several states challenging the policy’s burden on sick people. And early reports out of Nebraska, the first state to implement the work requirements, show eligible people are losing coverage for administrative reasons.
  • Kennedy sat down for an interview with CNN, during which he could not articulate specific plans to address disease outbreaks — as multiple outbreaks are ongoing. And a Senate committee voted along party lines Thursday to hold former public health official Anthony Fauci in contempt of Congress over his appearance before the committee last week.

Also this week, as part of the “How Would You Fix It?” series, Rovner interviews Sen. Andy Kim (D-N.J.), who has a new bill that would provide universal health coverage for all children.

Plus, for “extra credit” the panelists suggest health policy stories they read this week that they think you should read, too: 

Julie Rovner: The New York Times’ “,” by Sheryl Gay Stolberg.  

Alice Miranda Ollstein: NOTUS’ “,” by Margaret Manto.  

Joanne Kenen: The New York Times Magazine’s “,” by Helen Ouyang.  

Amanda Seitz: The Wall Street Journal’s “,” by Katherine Long.  

Also mentioned in this week’s podcast:

  • The Bulwark’s “,” by Jonathan Cohn.
  • The New York Times’ “,” by Reed Abelson.
  • Politico’s “” by Alice Miranda Ollstein and Josh Gerstein.
  • Underlying Conditions’ “,” by Céline Gounder.

Credits

Francis Ying Audio producer
Taylor Cook Audio producer
Emmarie Huetteman Editor

Click here to find all our podcasts.

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Ñî¹óåú´«Ã½Ò•îl Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on Ñî¹óåú´«Ã½Ò•îl Health News and is republished here under a .

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Medicaid Work Rule Leaves Homeless People in the Cold /medicaid/medicaid-work-requirements-rules-montana-homeless-people-exemption/ Thu, 06 Aug 2026 09:00:00 +0000 /?p=2266625 MISSOULA, Mont. — Tywon Pugh has seizures that make it hard to find and keep a job.

“They called me a ‘liability to the job site,’” Pugh said, recalling the words of his manager when a seizure cost him his last job at a fast-food restaurant in this western Montana city.

When the 46-year-old lost work in the past, his wife of 10 years covered their rent and he tended to their home until he found another job. But his wife died last year. Soon after, Pugh became homeless. His problem with alcohol became worse, which made managing his seizures more difficult.

“When she died, my whole base was depleted,” Pugh said.

Medicaid pays for the prescriptions that keep Pugh’s seizures at bay. The government-subsidized health coverage would also pay for an addiction treatment program that Pugh said he has tried to get into, but he was told there’s a waitlist.

Pugh’s goal has been to get healthy enough to work again. But he’s worried about being able to keep the Medicaid coverage he needs to get to that point.

Early Embrace of New Rules

In the spring, the federal government finalized regulations requiring millions of people who receive Medicaid benefits to prove they’re working, volunteering, or going to school to keep their coverage. States have until January to begin those checks. Montana, Arkansas, and Nebraska have already started implementing them.

The Trump administration’s federal work requirements exempt certain groups of people: those with disabilities, those older than 64, pregnant people and Native Americans, among others. To receive an exemption, anyone without a clear-cut qualification — such as through their age or disability status — will have to prove they’re too sick to work.

But the administration decided that being homeless isn’t a medical condition and can’t count as an automatic out from having to meet the new requirements. Many conservative policymakers support work requirements, and some states have attempted to implement such rules for years. At least four states — Montana, Arizona, Kentucky, and Utah — previously proposed policies that included homelessness as an exemption.

But federal officials have said that’s not allowed. In an email to Ñî¹óåú´«Ã½Ò•îl Health News, the Centers for Medicare & Medicaid Services declined to provide a comment on the record. But the agency confirmed that states must stick to the federal government’s list of exemptions. Homelessness in the U.S. increased by 27% from 2013 to 2025, from the Department of Housing and Urban Development. Last year, about 746,000 people .

Many, like Pugh, qualified for Medicaid, though the number of enrollees who are homeless is difficult to measure. In 2023, who received medical or behavioral health services through one of the nation’s roughly 300 programs were enrolled in Medicaid.

“My Medicaid is still active, but when are they gonna cut that off from me? I can’t get employed,” says Tywon Pugh, who been homeless in Missoula since his wife’s death in 2025. The federal government does not exempt people who are homeless from Medicaid work requirements. (Katheryn Houghton/Ñî¹óåú´«Ã½Ò•îl Health News)

Jennifer Tolbert, deputy director of KFF’s Program on Medicaid and the Uninsured, said the federal regulations are a lot stricter than many states had expected, even those on board with work requirements. (KFF is a health information nonprofit that includes Ñî¹óåú´«Ã½Ò•îl Health News.)

“It took everyone by surprise,” Tolbert said.

Mehmet Oz, who leads CMS, touted the regulations as a “path to prosperity” during a press conference in June.

“We need to get people to try to work,” Oz said. In June, 25 mostly Democratic-led states over the regulations, arguing the medical frailty standard would be too hard for enrollees to meet — and for states to assess. The work requirements are projected to increase the number of uninsured people nationwide by by 2034, according to the Congressional Budget Office.

Most states will begin to implement the Medicaid work requirements in January. 

Montana plans to begin booting Medicaid enrollees from coverage this October if they can’t prove they’re in compliance with the work requirement.

“My Medicaid is still active, but when are they gonna cut that off from me?” Pugh said. “I can’t get employed. How am I supposed to survive?”

The differences between the states’ and federal government’s exemption lists don’t end with people who are homeless. In Montana, lawmakers also planned to excuse people fleeing domestic violence and caregivers of hospitalized family members — two other groups left off the federal exemption list.

“These are simply parties that, due to a number of conditions, cannot meet those requirements,” Republican state Rep. Ed Buttrey said in 2019 when the Montana Legislature passed its first Medicaid work requirement bill. Buttrey did not comment for this article.

Federal officials have said many people who are homeless could fall under another exemption, such as being too sick to work. But, like many states, Montana’s system to automatically conduct those checks through existing medical records isn’t ready, though health department spokesperson Jon Ebelt said it should be in place by October. Anyone not automatically exempted by the state would have 30 days to prove their case.

Flyers at Partnership Health Center locations in Montana announce eligibility changes to Medicaid. (Katheryn Houghton/Ñî¹óåú´«Ã½Ò•îl Health News)
Partnership Health Center is one of roughly 1,400 health centers nationwide that receive federal funding to serve patients based on what they can afford. (Katheryn Houghton/Ñî¹óåú´«Ã½Ò•îl Health News)

A Possible Exemption for Health

Pugh might qualify for a pass due to his seizures. But getting to doctor appointments the past year has been hard for him.

The anniversary of his wife’s death just passed. Typically, Pugh has to find a new place to sleep outside each night. One night while camping, Pugh lost his wallet and important documents. And with the addiction treatment centers that accept Medicaid patients overbooked, Pugh has had to rely on willpower to avoid drinking.

“I’m taking it one day at a time,” he said.

A little over two hours north, in Kalispell, Dustin Goss, a case manager at a homeless shelter called Samaritan House, said Pugh’s experience reflects why he’s worried that people who qualify for an exemption will get tangled in bureaucratic tape.

“You can’t really worry about getting paperwork done when you don’t know where you’re eating today,” Goss said.

Cassidy Kipp, who heads Samaritan House, said once people find shelter and start to stabilize, they typically find work. But even then, meeting the new requirements can be challenging. Clients often start with temporary and informal jobs — such as cleaning out a storage unit — that don’t come with a pay stub, Kipp said. 

Kaitlyn Bosshardt, a social worker at Partnership Health Center, a health clinic in Missoula, has seen more people priced out of longtime rentals as housing costs outpace people’s paychecks. Meanwhile, affordable housing and rental aid are limited.

Kaitlyn Bosshardt, a social worker at Partnership Health Center in Missoula, counts letters about Medicaid that the state’s health department sent to clinic patients who don’t have a steady address. (Katheryn Houghton/Ñî¹óåú´«Ã½Ò•îl Health News)

Partnership Health is one of roughly 1,400 health centers nationwide that receive federal funding to serve patients based on what they can afford — meaning even those who lose Medicaid can receive care. But organizations representing health centers have said if too many patients lose the coverage, some clinics won’t be able to fill the financial hole.

The other problem is that these clinics generally don’t provide specialty care.

One day in June, as temperatures hovered around 90,  Pugh visited Watershed Navigation Center, a refuge run by Partnership for people without steady housing to have a meal or see a doctor. His doctor, Atarah Sidey, told Pugh that the neurology clinic that managed his seizures had dismissed him from their care after he missed three appointments.

She referred Pugh to the other neurologist in town and talked about trying to find treatment for his addiction.

“It’s just that if I don’t make the effort at changing, it ain’t gonna happen and I’m gonna end up found on the side of the road somewhere,” Pugh told Sidey.

“You got this, though, Tywon,” she responded as Pugh nodded his head. “You can do this.”

Pugh has connected with a social worker for help keeping his Medicaid. By late July, he was waiting for space to open at a Missoula addiction treatment center and waiting on responses from two job applications.

In the hard moments, Pugh imagines his wife telling him to stay calm, that things will get better.

“I just don’t wanna lose hope in the meantime,” he said.

Ñî¹óåú´«Ã½Ò•îl Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on Ñî¹óåú´«Ã½Ò•îl Health News and is republished here under a .

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Watch: Democratic Senator Proposes a Fix for American Healthcare — Covering All Kids /health-care-costs/interview-senator-andy-kim-healthcare-fix-children-coverage/ Thu, 06 Aug 2026 09:00:00 +0000 /?p=2268722&preview=true&preview_id=2268722 In this “How Would You Fix It?” interview, Julie Rovner, Ñî¹óåú´«Ã½Ò•îl Health News’ chief Washington correspondent and host of the What the Health? podcast, sat down with Sen. Andy Kim, a New Jersey Democrat, to discuss his proposal to grant all kids access to health coverage.

Kim, who serves on the Senate Health, Education, Labor and Pensions Committee, said it is “a real dereliction of our duty that we have not found a way to be able to ensure that every child is able to go see a doctor when they need to without breaking the bank.”

Under the senator’s proposal, children would be automatically enrolled at birth in the public program, which he . Parents would have the option to opt their kids out, though they could reenroll them at any time until age 26, Kim told Rovner.

“You want to make sure that all of these kids are able to get the care that they need as their bodies are and their brains are developing and that you don’t see the kind of withdrawal of or restriction of care that could have real consequences down the road,” he said.

Kim said offering comprehensive, universal coverage to American children would help them avoid chronic conditions in adulthood, in addition to providing broader societal benefits, such as a healthier workforce.

He added that he hopes his idea could gain traction should Democrats claim a majority in Congress in the midterm elections, as well as foster an important discussion about healthcare in the 2028 presidential race.

An abbreviated version of this interview aired Aug. 6 during Episode 458 of What the Health? From Ñî¹óåú´«Ã½Ò•îl Health News:The Return of ‘Medicare for All.’

Ñî¹óåú´«Ã½Ò•îl Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on Ñî¹óåú´«Ã½Ò•îl Health News and is republished here under a .

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What’s Worrying Veteran Health Reporter Julie Rovner? /podcast/an-arm-and-a-leg-veteran-health-reporter-julie-rovner-worried-election-concerns/ Wed, 05 Aug 2026 09:00:00 +0000 /?p=2267264&post_type=podcast&preview_id=2267264 Julie Rovner, Ñî¹óåú´«Ã½Ò•îl Health News’ chief Washington correspondent and host of the What the Health? podcast, joins An Arm and a Leg host Dan Weissmann to discuss the state of U.S. healthcare.

Rovner talks about the fallout from Trump administration cuts to Medicaid and Affordable Care Act subsidies. She also shares why she thinks healthcare will play a big role in the 2028 presidential election, and how she hopes her new podcast project — “How Would You Fix it?” — will contribute to the discussion.

You can hear “How Would You Fix It?” on Rovner’s weekly What the Health? From Ñî¹óåú´«Ã½Ò•îl Health News podcast, in which she speaks with newsmakers and journalists from top media outlets about the latest health policy headlines. 

Dan Weissmann Host and producer of "An Arm and a Leg." Previously, Dan was a staff reporter for Marketplace and Chicago's WBEZ. His work also appears on "All Things Considered," Marketplace, the BBC, "99% Invisible," and "Reveal," from the Center for Investigative Reporting.

Credits

Emily Pisacreta Producer
Lynn Barbera Producer
Adam Raymonda Audio wizard
Ellen Weiss Editor
Click to open the Transcript Transcript: Julie Rovner is worried: Checking in with a veteran DC reporter.

Note: “An Arm and a Leg” uses speech-recognition software to generate transcripts, which may contain errors. Please use the transcript as a tool but check the corresponding audio before quoting the podcast.

Dan: Hey there. It was just a little more than a year ago, in May 2025, the last time I checked in with my colleague Julie Rovner. She’s the chief Washington correspondent for our pals at Ñî¹óåú´«Ã½Ò•îl Health News and in what I would call a normal world, like a little more than a year would be really, really soon to talk with her again on this show.

Cause when I started making An Arm and a Leg, I didn’t expect that trying to keep up with the news was gonna be anything I would really have to think about too much. Like, I was setting out to understand and explain a multi-trillion dollar chunk of the economy that isn’t the tech industry, so I was like, how fast could it possibly move? And Julie Rovner’s thing is fast-moving news. On her weekly podcast, What The Health?, she leads a round table of health policy experts and journalists, and pours over a steady stream of headlines. Like whatever happens, big or small, Julie is tracking it. 

And then came 2025, and suddenly there’s this avalanche of news, and it’s big. Like, the Trump administration was making these sweeping changes, cuts to federal health programs. It was a ton of change, and I wanted to talk to Julie to try and wrap my head around it. And she told me even she was struggling to keep up. 

Here’s what she said then.

Julie Rovner: I’m trying to keep a running list of what’s been cut and what’s been restored, yeah, and it’s virtually impossible because there’s 20 things every day.

Dan: Yeah. And a lot’s happened since then. Like, Congress has added work requirements to Medicaid. It allowed federal subsidies for Obamacare to expire for millions of people. And those are, like, the biggest picture items. The rest of it feels like a blur. So, pop quiz: do we have a permanent FDA commissioner, CDC director, surgeon general?

I looked it up. As of July 21 the answer is no, in all three cases. It is an avalanche. So I wanted to talk to Julie again to get a glimpse at that avalanche from, like, further up the mountain, so to speak. 

Julie, thank you so much for coming back.

Julie Rovner: Always a pleasure, Dan.

Dan: Well, we’ll see how much of a pleasure it is to talk about the American healthcare system, but let’s give it a shot. 

Dan: This is An Arm and a Leg, a show about why healthcare costs so freaking much and what we can maybe do about it. I’m Dan Weissmann. I’m a reporter. I like a challenge, so the job we’ve chosen here is to take one of the most enraging, terrifying, depressing parts of American life and bring you something entertaining, empowering, and useful. This time with help from Julie Rovner. Here we go.

Julie, last time we talked, you were astonished and worried about the pace of change and, like, destruction given all the cuts at the Department of Health and Human Services. And here’s what you said then…

Julie Rovner: How I’ve been thinking about this is that our healthcare system is a giant Jenga tower and it’s a little wobbly and what holds it up is everything that happens from the Department of Health and Human Services and they’re yanking out sticks from this Jenga tower as fast as they possibly can and when the whole thing comes down, it’s gonna be very not pretty.

Dan: So you said that a year and change ago, and just like the news I’m seeing this week, we’re taping more than a week before we’re gonna publish this, but there’s been a huge public health story in the news. You know, this outbreak of a foodborne parasite called cyclospora that causes explosive diarrhea.

Boris Sanchez: a warning to more sensitive viewers, this next story is kind of gross.

Caitríona Perry: If you are about to tuck into a bowl of raspberries or a big plate of salad, we’re very sorry because we may be about to put you off your food.

Dr. Richard Smith: If you’re somebody that’s into going to salad bars on a weekly basis Just give that a rest for a week or two

Dan: Yeah again, we’re taping this in mid-July, so maybe this all gets cleared up by the time we publish, but right now, like, I’m personally having early COVID flashbacks trying to figure out what fruits and vegetables are safe to eat and how long I have to cook them.

And you know, sure enough, folks are pointing out that among last year’s many cuts at HHS was federal tracking of a half dozen foodborne pathogens, including this one, cyclospora. So I mean, it all feels a little on the nose. Julie, how are you seeing all this play out?

Julie Rovner: Yeah, it does feel very on the nose, if you will, um, because we’re, like, a month into this outbreak, and it’s a very big outbreak. But we still don’t know what’s causing it. So now we’re having, you know, I saw this morning, uh, a recommendation from a doctor said, “Just don’t eat any fresh fruits and vegetables for the next week or so,” um, because this is unfortunately a parasite that doesn’t –  you can’t necessarily get rid of by washing.

Which is not to say don’t wash your fruits and vegetables. Do wash your fruits and vegetables, but that’s not enough in this case. Um, but yeah, in an, in a normal world, we would know by now what it was, and nobody knows what’s safe to eat, and that’s what happens when you pull those pieces out of the Jenga tower.

Dan: Yeah. And again, like, a week from now when we publish this, who knows what we’ll know, who knows what we’ll be eating. But it seems symbolic.

Julie Rovner: Yeah, I think one of the things that’s going on, you know, last year when we had sort of DOGE cutting and, you know, there were headlines everywhere, and this, these many people were being laid off, and these many people were taking early buyouts and, you know, there was, there was all of this sort of coverage if you will, of all of these cuts.

Things are still not happening, and things are still getting cut, and it’s much quieter. You know, money that officials promised would get distributed as Congress ordered, um, is not getting distributed as Congress ordered. 

So, you know, there are people who are waiting for grants that have not come. Things are still getting cut. Um, political appointees are still making decisions that often, that in the past were always made by career professional scientists, um, doctors, um, people with long experience. As we know, we’ve seen large cuts at a lot of these agencies, so there’s a lot of expertise that’s walked out the door.

So even if there are people still there, they don’t necessarily know as much as they used to. Um, things are sort of going on at that lower level that are not making headlines, but that are still, for the people who are involved in them, or at least what they tell me, are not great.

Dan: Yeah. And what are you seeing play out as a result of the cuts that we’ve seen so far? Like, what are you hearing about that I – like, what do I not know that my neighbors might be experiencing, but I just don’t happen to be hearing about?

Julie Rovner: What you don’t know is how many people are not getting needed medical care because they can’t afford it, whether because they lost their subsidies for the Affordable Care Act and they couldn’t continue to afford their insurance, or in even more cases, their subsidies went down and they bought down into less generous policies and now they have, you know, five-figure deductibles, and so they have insurance, but they still can’t afford to get care.

Or they may be legal immigrants who lost their eligibility for health insurance that they used to have, um, or they may be part of a mixed-status family that dropped insurance because they were afraid of getting targeted by immigration authorities even though, you know, some, some people in the family, were perfectly eligible for these programs.

And we have seen states that are starting to cut back on Medicaid in anticipation of some of these federal cuts that mostly take effect next January, but that are starting to take effect in states already. 

Adam Atchison: Some individual caregivers in Colorado are about to see their Medicaid funding cut.

Michael Perchick: Tonight, the major question remains what can North Carolina do to make up for that major funding shortfall? 

Justin Corr: One of the biggest issues we knew the Idaho Legislature would debate this year. Now Medicaid cuts are moving forward.

Julie Rovner: And we’re seeing states that are cutting back on optional programs, which, you know, members of Congress last year when they were debating this bill said, “Oh, we’re not gonna go after people, you know, who are seniors or who have disabilities.”

Um, except those are the programs that are optional, and when states have to roll back their Medicaid programs, that’s what they roll back, and indeed, that’s what’s happening, and we’re seeing, you know, story after story. But again, these are happening a little more quietly, making fewer headlines. But for the people they’re hurting, they are really hurting.

Dan: Wow. Yeah, I mean, a couple of stories that I, you know, you’re reminding me of, right, that, um, new federal rules keep rolling out, and some of them include eligibility for Medicaid for, like, people giving care or, or what it means to be medically frail and not be able to work, right? Tightening those restrictions and saying, “Look, it’s, you’re gonna have to jump through a lot more hoops to prove that you can’t work.”

Julie Rovner: Yeah, almost all of these rules are being … Those are not finalized yet, but almost all of these rules are also being challenged in court, um, by states, by, uh, healthcare providers, who obviously wouldn’t get paid anymore for providing this care, um, and by patients. So we will see, you know, how these ultimately play out.

But there are, you know, a — this administration has been sort of cut first, answer questions later. That’s been kind of the theme from the beginning, and that is still what’s going on. You know, one of the things we’re gonna talk about, um, on our podcast this week, uh, are stories of family caregivers, people who are losing eligibility for their families, uh, to help take care of them. You know, and, uh, Dr. Oz, who’s the head of Medicare and Medicaid, you know, has been talking about people who are, you know, collecting money for, you know, going to the grocery store or bringing in the newspaper…

Dr. Oz: Something called personal care services. You’ve never heard of that. Personal care services, basically, you’re paying your kids to carry the groceries upstairs, but you’re not actually paying. The state’s paying, and then the federal government’s paying the state back.

Julie Rovner: That’s not what these people are doing. These are people who are changing feeding tubes and, you know, helping people who are not ambulatory in and out of bed and on and off the toilet. I mean, this is … these are very, very difficult jobs, um, that, yes, sometimes family members are paid to do, but if they make it impossible, a lot of these people don’t know where they’re going to get help, and in some cases, these patients are gonna end up in institutions, and that’s gonna end up costing the federal government and taxpayers even more money in the long run.

Dan: And, and these cutoffs are happening now? 

Julie Rovner: They are. 

Dan: Like, folks are, folks are getting notices or being told, like, “No, your check for taking care of mom isn’t coming this week. You’re not getting that.”

Julie Rovner: That’s exactly what’s going on. In, in, in my home state of Maryland, they are cutting off this program. I believe… I can’t remember the exact date. It may be, there may be another month or so, but it’s, you know, they are getting notices that these programs are ending and I think Maryland is one of a half a dozen states that’s doing that.

Dan: Wow. And it’s, it’s like you said, these huge stories, they’re not grabbing a lot of headlines. I mean, like recently on your show, you were like, “What was shocking last year is now kind of status quo,” like at least in terms of media attention. But you’re still tracking all of it. 

And, all this reminded me of what you said when I talked with you the first time last year. So our Zoom meeting started, we started rolling tape. I said, “How are you?” And this is what you said:

Julie Rovner: I have a shirt that says, “Up and not crying.” I also have a shirt that says, “This is not normal.”

Dan: And I wanted to ask you, like, how are you doing now? Are y- d- are those shirts still in your wardrobe?

Julie Rovner: They are, and I have another one that says, “This is my living in unprecedented times shirt.” And I kind of rotate them.

Dan: And, and how, because many of us have the option, I always figured I did, of like, “Yeah, I’m gonna, I’m gonna titrate my exposure to news. I’m gonna calibrate, like this is how much I, you know, is good for me, is healthy for me to have right now.” And you know, some people turn it off altogether. And you do not have that option, unless you choose to do something entirely different. But like, I wanna ask you personally, like what is that like for you? 

Julie Rovner: It’s exhausting. 

Dan: Yeah.

Julie Rovner: I mean, I, and I worry. I worry about people, um, who need healthcare and aren’t getting it. I worry about students who, um, are trying to decide whether they can actually pursue their dreams of becoming a healthcare practitioner or a scientific researcher who are seeing sort of their pipelines cut off. That’s, that’s a big concern for me right now.

And I see things like Ben Sasse, the former senator who was very near death from pancreatic cancer, suddenly being able to take a new drug. And he said that, you know, his cancer is 99% gone. I mean, you see these medical breakthroughs that frankly government-sponsored research has helped bring to us, um, and I worry about whether they’re gonna be there for the next generation.

I mean, that’s something that’s, that’s really sort of jumping out at me. It’s like, look at all the things that we can do. Do you know why we’ve been able to do this? We’ve had this bipartisan agreement that investing in science and medicine is a good thing. That’s separate and apart from the fact that our healthcare system is messed up and costs too much, which I know is what you concentrate on – thank you very much. Um, but, you know, both of them are in trouble right now. And as I say, it’s not so much … You know, last year it was all the headlines. Now it’s just sort of, as I said, it’s kind of become the status quo that things are crumbling, and that worries me even more than when it was all over the headlines.

Dan: Coming up, I get Julie’s take on what’s happening to the Affordable Care Act and what she thinks is gonna happen in 2028 and beyond. That’s next

Dan: This episode of An Arm and a Leg is produced in partnership with Ñî¹óåú´«Ã½Ò•îl Health News. That’s a nonprofit newsroom covering health issues in America.

The folks at Ñî¹óåú´«Ã½Ò•îl Health News are amazing journalists like, you know, today’s guest, Julie Rovner. Their work wins all kinds of awards every year, and we are honored to work with them

Dan: So, Julie, you know, since the last time we talked, as you noted: some Obamacare subsidies ended, and premiums went through the roof. Millions of people have dropped their insurance. And lots have signed up for cheaper plans that cover less.

And now, the Trump administration has been rewriting the rules for next year to encourage more people to sign up for plans that would cover a lot less, like including plans that require you to spend $30,000 or more to cover your family before insurance kicks in at all. And, you know, like, the two pillars of the Affordable Care Act were, like, let’s use subsidies to make non-crummy private insurance affordable for most people, and let’s expand Medicaid.

So, Republicans kept saying they just wanted to repeal the ACA, but, you know, they never did. And now I’m wondering, like, are we seeing something that’s, like, effectively kind of a slow motion repeal of the ACA by other means?

Julie Rovner: Oh, absolutely. No question about it. Um, most of the Affordable Care Act has been dismantled over, you know, th- th- this was … Several people have written this story. It’s like, you know, Republicans failed on their repeal and replace when they called it repeal. But basically, over the last 10 years, look at all the things we’ve taken away.

All the taxes that supported the financing of this have gone away. So the supporting taxes which were on mostly individ- you know, they were on health insurers, and drug companies, and, and large businesses, most of those have been, have gone away. Thank you lobbyists, you know, who came and said, “We don’t wanna pay these taxes.” Um, so basically the money’s just coming out of the treasury now. 

The- one of the things that the Republican budget bill did last year um, it didn’t roll back the explicit, expansion of Medicaid, but now we’re gonna have these work requirements, which, what we know from other states that have done work requirements end up, yes, taking off people who are, who simply refuse to work, but also because of the bureaucracy involved, end up cutting off people who are working, and who are eligible, and who do need the, the health insurance coverage. We have seen this.

You know, most of the people who end up getting kicked off the program get kicked off for what are called administrative reasons, which means they just could not navigate all of the required paperwork and bureaucracy. Um, so I mean, we really are seeing a slow motion repeal of the Affordable Care Act.

Dan: And so what might happen? I mean, Like, you’ve been looking at this for 40 years, and I’m, I am old enough to remember as a young person noticing that, like, when Bill Clinton ran for president in the early 1990s, you know, a big piece of the pitch was like, “Healthcare costs too much. Not enough people have insurance. We gotta do something about it.” And it, you know, they weren’t able to pass a law. But where might things go?

Julie Rovner: So let me tell you one of the things that kind of freaks me out. Um, would, and you go back to sort of the Affordable Care Act. I covered the Clinton health plan, and it- it died, as I like to describe, because, you know, everybody, all of those special interests wanted to cut off just one finger of it, and in the end, the patient bled to death. That’s sort of been my go-to metaphor for the Clinton healthcare plan. 

So what happened when they tried to put together the Obama healthcare plan is it like- like rather than have all of the special interest outside of the tent, let’s get all the special interest into the tent, and one of the ways they did that is said, “Look, if more people are insured, then you’re gonna get more of your bills paid.”

And particularly, you know, the hospitals and the drug companies said, “Yeah, that sounds good. We would like people to be able to pay for the things that we provide.” Um, well, so what are we doing now? We’re taking this apart, and we’re having people not be able to pay for things, and we’re having states not be able to pay for things.

States had used what was called creative financing for their portion of Medicaid, which remember, is a shared expense between the federal government and the states. So now you’ve got hospitals freaking out, and you also … I mean, we’re seeing hospitals close. It starts with rural hospitals. But, you know, I- I like to say it’s not just people without insurance who are gonna be impacted by this.

If health providers can no longer keep their doors open, then even if you have insurance, you may not have any place to go to get it. We’re already seeing healthcare deserts in, you know, less populated parts of the country. What is this gonna do when you see fewer people with health insurance, fewer people with Medicaid, fewer people with the Affordable Care Act?

Dan: Umm. Wow. 

Julie Rovner: Sorry, I’m just a continuing ray of sunshine.

Dan: No, no, no. No, no, you’re, you’re like– I’m asking you what might happen, you’re like, “Well, here’s the worst that might happen.” But, um, you know, what might a path look like to changing course?

Julie Rovner: Well, I feel like, you know, and when it comes to healthcare, the left is moving to the left and the right is moving to the right. Um, you know, we’ve always in, in the 40 years I’ve been doing this, um, and even going back to things like Medicare in 1965, what has gotten things done is when people, is when the two sides come together in a compromise. Those are the only big achievements in healthcare. Um, with the possible exception of the Affordable Care Act, which Republicans say, you know, “Oh, that wasn’t, you know, that w- that was only, that passed only with Democratic votes,” but it was a Republican idea. It was pulled from what Mitt Romney did in Massachusetts in 2006. So it was intended as a compromise, um, even if in the end the Republicans … The Republicans started moving right, I think, before the Democrats started moving left. 

But now you’re seeing, you know, most of the Democratic candidates, I’m looking in the midterms, you know, are, are back to the mantra of Medicare for All. Joe Biden was one of the few candidates in 2020 who did not endorse Medicare for All. He wanted to just expand the Affordable Care Act. That’s what was seen as a middle ground. 

Now nobody seems to want a middle ground. You know, the right wants to just take everything apart and get government out of healthcare in general and let people, you know, sort of give people a little bit of money and have them, you know, have the free market take over. And the left wants Medicare for All, which is, you know, the, the U.S. has tried to, to do what every other country has done and have universal coverage, and has so far not really succeeded at that. Although I will say at its peak, the, when the Affordable Care Act had the expanded subsidies, we were down to about an 8% uninsurance rate, which was the lowest since anybody had been keeping track. So it was, it was getting closer. 

Um, but now I see the parties moving apart. Will they move back together again at some point? I don’t know. Um, but, but for, I think, the immediate future, we’re seeing them retreat to their corners. And in healthcare that really, even though sometimes at the 30,000-foot level they’ve been fighting about that, at the 5,000-foot level they’ve been able to get together and do things. Um, a good example is the No Surprises Act, you know, the let’s get rid of surprise bills. 

Um, I’m not sure I even see them coming together on sort of the little stuff right now. Everybody is just very, very, very unhappy with everybody else.

Dan: Wow. Well. Okay. Uh, it’s not the cheerfulest thing I ever

Julie Rovner: You look like you’re, you’re processing that.

Dan: I am. I am. I am. I am. And of course, you know, as you say, during this period when people had, when the, the greatest proportion of people had insurance, uh, you know, I’m still doing this show. I mean, people have insurance, but having insurance doesn’t necessarily mean you have healthcare that you need and can afford.

Julie Rovner: Yes, everything. We will both be employed for as long as we want talking about the foibles of the U.S. healthcare system.

Dan: I mean…

Julie Rovner: That I am con- that prediction I am very confident of

Dan: I will never run out of material – that’s the crappy thing. But things are, like we said, they’re accelerating, they’re different, and I’m wondering how is all this changing how you see your job going forward?

Julie Rovner: Well, one thing that I’m, working towards myself, is I am predicting that we are going to have another major political throw down over healthcare in the coming years. Not necessarily next year, but probably, you know, the … I think this will be a big focus of the 2028 presidential campaign, and in 2029 we’re gonna have a big debate.

Are we gonna solve anything? I have no idea. But in preparation for that debate, I feel like there’s a whole generation that sort of didn’t live through the Clinton health plan, and that didn’t even live through the fight over the Affordable Care Act, and that one of the things that I would like to do as sort of a public service, um, is throw all of the options back on the table for people to see that, you know, that if this was easy, we would’ve solved it a long time ago. 

So I am … One of the things that we’re doing as part of our podcast is a special project called How Would You Fix It? I am sort of calling every smart person I know from across the ideological spectrum and asking them, “Okay, how would you fix it?”

I mean, I’m nearing retirement myself. I feel like I have this obligation to kind of, you know, shepherd the people who wanna learn through another round of this, um, so that we can have an educated debate and decide what we as a society wanna do about healthcare.

Dan: Wow. You think there will be a great big conversation, there will be a great big change. 

Julie Rovner: Uh, I think there will be a great big conversation. I don’t know that I think there will be great big change. I’ve, I’ve, I have covered enough of unsuccessful ones of these. I, I am not predicting its success, I am simply predicting the fight.

Dan: Fair, fair, fair. But, uh, even so, um, having a big public conversation seems better than not. 

Julie Rovner: As a journalist, I would think that. As somebody, and who’s … As somebody who cares about the, the, the sorry state of our healthcare system, I, I think it would be — I think it’s time.

Frankly, one of the reasons I think this is about to happen is that when in the early 2000s, when we were sort of building up to the fight over the Affordable Care Act, you could sort of see it coming because everybody was unhappy, and everybody wanted to sue for peace.

Um, you know, that the, the hospitals were unhappy, the drug companies were unhappy, the doctors were unhappy. You know, the, the employers were unhappy. The labor unions were unhappy. I feel like that is true again, and it’s more true.

And now even the haves, what we call them, the people who have insurance and don’t want, you know, are afraid of change, even the haves are unhappy. Everybody thinks they’re paying too much, which is why I’m predicting we’re gonna have another big public debate about this in the next four or five years.

Dan: I think the prospect of having a big public debate about a big public problem also strikes me as like an optimistic stance for anyone who cares about, you know, living in a democracy where people have a say in, in democracy where people have a say in what happens.  

Julie Rovner: It is, I, I’m sort of clinging to it as a, as a hope

Dan: Mm-hmm. I, uh, I just really appreciate that.

Julie Rovner, thank you so much for joining me. It’s been such a pleasure. Um, till next time, I’ll be listening to “How Did You Fix It?”

Julie Rovner: Thank you, Dan. And see, talking to you makes me feel better.

Dan: All right. That’s what I’m going for. That’s what I’m going for. Let, let’s stay in touch. 

Julie Rovner: We will. 

Dan: All right. Great. Take care. 

Julie Rovner: Thanks, Dan. 

Dan: Bye-bye. 

Dan: Okay, so I asked Julie Rovner how the avalanche of change has her thinking about her job description these days, and I wanna share how I’ve been thinking about mine.

You might have noticed over the last couple of months we’ve taken a break from producing podcast episodes, and here’s why. Basically, in April a few family health issues blossomed all at once. And as I turned my attention there, I realized I had some health issues of my own that needed attention. 

I started making this show eight years ago. I’ve been running it on a shoestring ever since, and that has meant running myself a little ragged sometimes. Honestly, too often and for too long. That’s not good for my health, and it’s not good for An Arm and a Leg, ’cause a ragged version of me does not make the best version of this show.

I needed some time just to break some habits — I called it detox from workaholism — and I needed to attend to my own health.

Like, earlier this year, I’d scheduled a little surgery, and I put it off ’cause I got sick from — you guessed it — running myself so ragged. And of course I was still trying to run so hard, I couldn’t imagine when I might reschedule it. So honestly, it wasn’t until I put myself on break for a minute that I even thought, “Oh yeah, I, I could do that surgery now.”

So surgery happened in early June. I’m all healed up, and I’ve been working with a really excellent therapist, and I’ve been incredibly grateful to my colleagues for their patience and for keeping things running. And together, we are starting to put together some new ways of doing things. It’s gonna be a work in progress.

There are so many things we wanna do. But I can’t be a workaholic anymore. So for our next episode, we’re gonna bring back one more favorite from our archives, give ourselves a running start, and then we’ve got some incredible, important stories and projects we just can’t wait to get back to. For now, thank you so much for sticking with us. It is a privilege to get to do this work, make this show for you, and to work with my incredible colleagues.

I will catch you soon. Till then let’s all take care of ourselves.

This episode of An Arm and a Leg was produced by Emily Pisacreta, with help from our summer intern, Lynn Barbera (welcome, Lynn!) — and edited by Ellen Weiss. 

Adam Raymonda is our audio wizard.

Our music is by Dave Weiner and Blue Dot Sessions. 

Claire Davenport is our engagement producer.

Amanda Boyd is our Operations Manager. Bea Bosco is our consulting director of operations. 

An Arm and a Leg is produced in partnership with Ñî¹óåú´«Ã½Ò•îl Health News. That’s a national newsroom producing in-depth journalism about health issues in America and a core program at KFF, an independent source of health policy research, polling, and journalism.

Zach Dyer is senior audio producer at Ñî¹óåú´«Ã½Ò•îl Health News. He’s editorial liaison to this show.

An Arm and a Leg is distributed by KUOW, Seattle’s NPR news station.

And thanks to the Institute for Nonprofit News for serving as our fiscal sponsor.

They allow us to accept tax-exempt donations. You can learn more about INN at INN.org.

Finally, thank you to everybody who supports this show financially.

You can join in any time at arm and a leg show, dot com, slash: support.


An Arm and a Leg is a co-production of Ñî¹óåú´«Ã½Ò•îl Health News and Public Road Productions.

For more from the team at An Arm and a Leg, subscribe to its weekly newsletter, . You can also follow the show on , , , and . And if you’ve got stories to tell about the healthcare system, the producers would love to .

To hear all Ñî¹óåú´«Ã½Ò•îl Health News podcasts, click here.

And subscribe to An Arm and a Leg on , , , or wherever you listen to podcasts.

Ñî¹óåú´«Ã½Ò•îl Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on Ñî¹óåú´«Ã½Ò•îl Health News and is republished here under a .

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AI Is Being Used to Boost Medicaid Enrollment, but Not Without Concerns /medicaid/medicaid-work-requirements-medi-cal-ai-agents-reenroll-careforce-california/ Tue, 04 Aug 2026 09:00:00 +0000 /?p=2266679 Vanessa Barahona received a call this past spring from Angelica at Kern Family Health Care in Bakersfield, California, telling her it was time to renew her coverage under Medi-Cal, the state’s version of Medicaid.

Angelica helped Barahona, 41, schedule an appointment to complete her paperwork in person at Kern Family’s offices before she submitted it to Kern County officials for approval. When Barahona had a conflict with her office-cleaning job, Angelica rescheduled the appointment. Barahona finished the process a little later than she’d planned but early enough to avoid an interruption in her coverage.

“It was easy. The fact that Angelica spoke Spanish when we were on the phone made it better,” Barahona, whom Ñî¹óåú´«Ã½Ò•îl Health News met through Kern Family Health Care, said via a translator. “It felt like I was talking to a real person.”

She definitely wasn’t.

“Angelica” is the name assigned to an AI program deployed last year by Kern Family Health Care, the largest provider of Medi-Cal services in Kern County. An estimated 52% of residents there rely on the safety net program for health coverage, among the highest enrollment rates in the state.

Kern Family has spent about $370,000 on the software , a San Francisco startup, to facilitate rapid and repeated outreach to members when it’s time to renew their coverage — a process that is about to become more complex under new Medicaid eligibility rules established under Republicans’ One Big Beautiful Bill Act, signed into law last year by President Donald Trump. Mandatory work requirement documentation will take effect nationally beginning in 2027, and under the GOP’s new rules, most Medicaid patients will now have to renew their enrollment twice a year, rather than once a year.

Kern Family and other similar health plans have an interest in keeping people enrolled, since they’re paid through managed care contracts with Medi-Cal. They can also save money by using AI software to do what Kern says would otherwise require it to hire 40 full-time workers. Angelica does it at a fraction of the cost and without increasing payroll — or requiring Kern Family to navigate workers’ rights issues or government-mandated workplace protections.

Although Kern Family officials say no workers have lost jobs, the health plan, which is not unionized, estimated it would have had to spend $2.4 million in staffing costs to match the program’s more than 800,000 calls to its 387,000 members since Kern Family began using Angelica late last year.

As the federal government ended pandemic-era protections and states resumed screening people for Medicaid eligibility, health plans such as Kern Family began looking to technology to keep eligible people enrolled. Kern Family officials say that Angelica helps people, in their preferred language, set up appointments with the plan’s staffers, who make sure that applications are filled out correctly and delivered to county health officials for verification and processing.

Careforce CEO Huzaifa Sial said Kern Family is one of a few health insurers using his company’s software to help boost its Medi-Cal enrollment, and the company is also working with the Central California Alliance for Health in much the same way. “Most people don’t know what they need, and if they do, they have a hard time getting there,” Sial said. “That’s the hidden execution problem that nobody sees.”

A website screengrab of a woman with dark hair and a black shirt smiling next to text that reads "Endless Outreach & Admin" and "Angelica AI Care Coordinator"
“Angelica” is the name assigned to a conversational AI program deployed last year by California’s Kern Family Health Care, the largest provider of Medi-Cal services in Kern County. Kern Family has spent about $370,000 on the software by Careforce, a San Francisco startup, to facilitate rapid and repeated outreach to members when it’s time to renew their coverage. (Screengrab of Careforce.ai)

The rise of AI in the healthcare industry has prompted worries about who’s overseeing these tools and whether people are being improperly or . Unions have raised concerns about workplace surveillance and the . Polling shows over AI-driven job losses and growing income inequality, while health policy researchers have also about algorithmic biases, transparency, data privacy, and safety risks.

Mark Duggan, a Stanford University economics professor who has studied the Medicaid system for 30 years, said one long-standing fear is that insurers could use such software to cherry-pick patients for coverage.

“When you have a new technology like this, you need to police it,” Duggan said.

Complying With Regulations

California health plan regulators say they are tracking AI use closely, and the state attorney general’s office has to healthcare entities about their obligation to follow consumer protection rules.

Anthony Cava, a spokesperson for the state’s Department of Health Care Services, said Medi-Cal health plans have flexibility in how they handle member renewals, including with the use of AI tools. But plans are responsible for ensuring that technology complies with state and federal regulations, including patient privacy and data security, he said.

Last year, the agency, foreseeing the huge volume of reenrollments that were going to be required in the state, began allowing managed care plans to contact members about renewals. State rules still prohibit Medi-Cal health plans from soliciting new enrollees, and only county health officials determine eligibility.

Emily Duran, CEO of Kern Health Services (which administers Kern Family), said that the plan worked closely with the Kern County Department of Human Services to obtain some data, allowing Kern Family to know when a member’s Medi-Cal eligibility will expire.

The health plan, in turn, lets the county know anytime it receives updated demographic or contact information for its Medi-Cal members. And the county has stationed workers inside Kern Family Health Care’s main facility in Bakersfield to answer enrollment questions for people who walk in to finish their paperwork.

“They have a leadership group that is very innovative and forward-thinking,” Vanessa Frando, the chief deputy director of Kern County Human Services, said of Kern Family. The agency also works closely with other Medi-Cal providers in the county, Frando said.

Duran said the health plan was initially concerned about how Angelica would be received.

“We had to set the tone to really be open to the idea, because you hear ‘AI’ and you’re like, ‘Oh, yeah, Jeff Bezos laid off 100,000 people because of that,’” Duran said. “But we are already stretched thin. We need this functionality to be much more effective and augment our efforts.”

Duran said Kern Family’s leadership and staff bought in after seeing a demonstration.

Today, it would take 40 Kern Family employees, each working 40 hours a week, to match Angelica’s calls to remind people to reenroll and talk them through what is involved, according to Jackie Byrd, a spokesperson for the health plan. The AI program’s settings are constantly adjusted to match the capacity of Kern Family’s full-time staff.

Full Conversations With AI

Barahona said she received a Medi-Cal packet in the mail but didn’t think about it until Angelica called days later. That exchange highlights one of local and state health officials’ biggest concerns — that people who’ve grown accustomed to automatic renewals aren’t aware of the reenrollment requirements.

Angelica speaks more than 30 languages and can answer lengthy questions. In samples of actual conversations provided to a reporter, Angelica sounded lifelike at first, although more than once cross-talk with a patient caused the program to pause suddenly. Barahona said it took her a minute before she realized she wasn’t speaking with a human, but she ended up having a full conversation with Angelica.

Duran said Kern Family was able to redirect full-time staff to focus on the more complex parts of the Medi-Cal process, such as making sure the patients’ information is complete and up to date. The Angelica software also operates at all hours, making it easier for patients to call back at their convenience. Another version, David, is used internally to help staffers navigate the technology.

“This will always be, in my opinion, an AI-human combination,” said Careforce’s Sial. Working with AI solutions for more than a decade at UnitedHealthcare and Optum, Sial said, he saw an opportunity to improve the enrollment process by helping people organize their paperwork.

Kern Family’s Medi-Cal renewal rate in April was 94.9%, delighting the plan’s officials, who feared a significant drop-off from patients who’d gotten used to being automatically renewed over the past several years. By comparison, Duran said that about 80% of enrollments had automatically renewed under federal pandemic-era rules, but that figure was cut in half as those protections began to expire.

Kern Family officials say there could be other uses for Careforce’s software in the future; Angelica, like other generative-AI large language models, can learn and adapt to new situations and requests.

Cesar Delgado, Kern Family’s chief information officer, said Angelica is already being used to make general greeting calls to new members and can discuss plan benefits and answer basic questions. But Kern Family officials say the program’s primary purpose, for now, is limited to contacting patients whose Medi-Cal eligibility is coming up for review.

Duggan, the Stanford professor, said Angelica could help Kern Family minimize the number of Medi-Cal enrollees who lose coverage as federal requirements take effect.

“The best-case scenario is helping people to stay on when they don’t realize that things are changing,” Duggan said. “It’s not an easy program to navigate.”

This article was produced in collaboration with , an independent, California-based nonprofit investigative news publication that reports on inequality, climate change and other issues.

Ñî¹óåú´«Ã½Ò•îl Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on Ñî¹óåú´«Ã½Ò•îl Health News and is republished here under a .

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Kennedy, Oz Contend Fraud Crackdown, Not Skyrocketing Prices, Led Millions To Leave Obamacare /medicaid/aca-fraud-crackdown-skyrocketing-prices-enrollment-decline/ Mon, 03 Aug 2026 09:00:00 +0000 /?p=2265083 The Trump administration credits its fraud control efforts for the disappearance of millions of people from Obamacare rolls rather than a sharp rise in premiums — a claim disputed by policy experts that glosses over the reality that many more Americans now find themselves without health insurance.

Enrollment in Affordable Care Act plans fell by nearly 3 million this year to about 19.2 million, following steep premium increases by insurers and the Republican-led Congress’ unwillingness to extend more generous premium subsidies. On average, ACA customers in premium payments this year, a 58% increase from 2025, according to KFF, while their deductibles — the amount consumers must pay annually before insurers pick up their share — have climbed 37% to nearly $3,800 a year.

“These are real people who are now forced to make impossible choices,” said Annalyse Keller, a spokesperson for a large coalition of lobby organizations for the healthcare industry, including insurers and patient advocacy groups.

But a released in June, written mostly by President Donald Trump’s political appointees and allies, asserts that 5.6 million people were fraudulently enrolled in ACA plans in 2025, and that the Trump administration removed 2.9 million of them — the same number as the 2026 drop in enrollment.

There’s little dispute that the ACA suffers from some fraud, as do most government programs. The administration said it has taken actions to tighten the enrollment process to thwart brokers who fraudulently enroll people without their knowledge.

For example, the administration in August 2025 halted a Biden-era initiative that allowed low-income people to sign up for coverage year-round. Regulators 1.5 million people since 2025 for reasons such as not meeting a requirement to file their taxes over two years or being concurrently enrolled in another health program, such as Medicaid, which is not allowed.

But health policy experts say that the administration is overstating the extent of ACA fraud and that the HHS report relies on debatable assumptions, such as that all sign-ups under the year-round enrollment program for low-income people were potentially fraudulent. ACA enrollment fell off a cliff because of escalating prices for insurance plans, policy analysts say, which the administration’s done nothing to stem.

“The top-level claim” that all the decline in enrollment since 2025 is because of improper or fraudulent enrollees leaving the market “is not remotely credible,” said , a senior fellow at the Brookings Institution. “We know that lots of people have seen higher premiums, and there’s really good evidence that when premiums go up, people drop coverage.”

Healthcare costs are a big concern for voters ahead of November’s midterm elections, and both Democrats and Republicans are trying to spin the issue to their advantage. Democrats argue more needs to be done to make insurance less expensive for consumers, while Republicans are trying to focus on the need to save taxpayer dollars from fraud.

found that voters trust Democrats over Republicans to address healthcare costs (37% vs. 26%). The poll also found, though, that 55% of Republican voters consider it extremely important for candidates to address healthcare fraud, more than any other issue, showing that the White House’s effort to shift focus from costs has had some success with its own supporters.

But Jonathan Oberlander, a professor of health policy and management at the University of North Carolina, questioned whether the fraud narrative will hold up as voters continue to struggle with rising costs.

“It will be cold comfort to the very real persons who could no longer afford coverage and dropped their plans,” he said in an email to Ñî¹óåú´«Ã½Ò•îl Health News.

How We Got Here

Under President Joe Biden, Congress that included more generous tax subsidies for people enrolled in Obamacare, starting in 2021. Those enhanced subsidies lowered premium payments, for a large enough tax credit to reduce their monthly payment to zero. The Biden-era law also allowed wealthier households to get assistance.

ACA coverage essentially doubled, from just over 11 million Americans in 2021 to more than 22 million in 2025, according to the HHS report.

Republicans and conservative groups argue that the growth wasn’t driven only by people newly enrolling because of lower premiums. Instead, they say, the enhanced subsidies, along with other Biden-era policies — including easing income verification requirements for some enrollees — invited fraud. Unscrupulous, commission-seeking insurance brokers found it easier to sign people up for coverage, often without their knowledge, while ordinary consumers could more easily fudge their income and qualify for the largest subsidy possible.

The conservative Paragon Health Institute’s president, Brian Blase, wrote that the HHS report’s conclusion on the scope of improper enrollment is likely an undercount. He remains unconvinced by the arguments that rising premiums are to blame for the sharp drop in ACA enrollment, saying subsidies remain generous for many people.

The Administration’s Current Targets

The debate will continue as more enrollment data emerges from the federal marketplace and the exchanges run by states. Some policy experts — including the consulting group Wakely — expect the year to end with the number of ACA policyholders down by .

Trump’s regulators will likely connect further drops with anti-fraud efforts. The HHS report alleges there are potentially millions more who remain improperly enrolled. The report’s authors noted that some of the administration’s anti-fraud proposals have been blocked by court rulings.

HHS released June 27, HHS Secretary Robert F. Kennedy Jr. pats Mehmet Oz, the head of the Centers for Medicare & Medicaid Services, on the back for the number of canceled ACA plans so far. Oz threatens potential ACA hucksters: “Don’t walk away from us, run! Because we are going to find you.”

In an email responding to Ñî¹óåú´«Ã½Ò•îl Health News’ questions, CMS spokesperson Christopher Krepich said his agency this summer will block ACA applications made by brokers that lack a Social Security number. By open enrollment this fall, CMS plans to require more identify-proofing when brokers enroll people and will limit a broker’s access to accounts until that person “has been authorized by the consumer to work on their behalf.”

How some suspicious enrollments will be removed is spelled out in emails sent in June to insurance carriers and obtained by Ñî¹óåú´«Ã½Ò•îl Health News.

CMS told insurers that the agency will send them files for ACA accounts it believes are potentially unauthorized. Each flagged consumer account will have used a sales broker to enroll, be in a zero-premium plan, and lack a Social Security or an immigration documentation number — which Kennedy said in the video is a glaring sign of fraud.

Insurers must try to contact the enrollees to verify that they signed up for coverage. After 60 days, insurers must report policies they were unable to verify to CMS, which will cancel them.

Krepich wrote that carriers are cooperating with efforts to investigate accounts with missing or unverified information.

Policy experts, including Fiedler, note that the absence of a Social Security number doesn’t automatically prove fraud. While it could indicate a fake enrollee, a missing Social Security number might also be a simple oversight by the consumer or their broker, for example, or a newborn added to a parent’s account at birth, before they’ve received a number.

“That the administration put it in a report and did not summarily terminate these enrollments suggests they believe there is some mix of different circumstances,” Fiedler said.

The administration report singles out another segment of enrollments as suspicious: very low-income, subsidy-eligible people who shifted to plans that carry no monthly premium, suggesting “fraudulent agents and brokers are moving them to keep gaining commissions and avoid detection.” The report also cites ACA enrollees who file no medical claims as suspicious.

Policy experts question the assumptions behind those concerns.

Younger or lower-income people use healthcare less often, for example, which can explain why they may make no claims — particularly when they must first spend thousands of dollars out-of-pocket to meet high deductibles.

And very low-income people may switch to plans with higher deductibles in exchange for making no premium payment because they struggle to come up with the $50 or $80 monthly share that other plans might require.

“People are hurting for money,” said Florida insurance agent Jason Fine. “I literally have people who can’t afford to pay $15. I would not immediately assume that a person who went from a silver plan to a bronze plan, that it’s fraud,” referring to two types of ACA plans.

Fine said the administration needs to focus on better enforcement of existing rules, saying he has reported to regulators dozens of unscrupulous agents who have switched clients without authorization, yet none were barred from selling ACA policies.

He and other agents continue to push for adding multifactor identification, as banks and other financial institutions use, to the federal ACA marketplace. Some states that run their own exchanges have two-factor authentication or other types of ID verification and have not reported problems with unauthorized switching.

CMS — under both Biden and Trump — has not added two-factor authentication to the federal marketplace, healthcare.gov.

Rep. Glenn Grothman (R-Wis.) to require it in June, but its prospects are murky.

“It will help reduce fraud,” said Ronnell Nolan, who leads Health Agents for America, a lobbying group that has long urged CMS to add the feature. Grothman’s legislation, she said, might “encourage CMS to do it themselves.”

Ñî¹óåú´«Ã½Ò•îl Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on Ñî¹óåú´«Ã½Ò•îl Health News and is republished here under a .

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People With Disabilities Fear Service Cuts as Trump’s DOJ Questions Legal Protections /syndicate/people-with-disabilities-fear-service-cuts-as-trumps-doj-questions-legal-protections/ Mon, 03 Aug 2026 09:00:00 +0000 /?p=2266682 Amanda DeSimone-Shabrack relies on a home healthcare aide to help her high-needs autistic 12-year-old son. Virginia’s Medicaid program covers the assistance, enabling her to work as both an education technology specialist and a professor, run errands, and keep Mason in the home.

That could change. In June, the Department of Justice issued saying federal disability rights laws don’t require states to provide services that allow people with disabilities to remain in their homes rather than institutions.

It’s a sharp reversal from 1999, when a held that unjustified institutionalization constituted discrimination under the Americans with Disabilities Act. Previous administrations have relied on that ruling to enforce civil rights for disabled people, but the Trump administration says that long-held interpretation is wrong.

Advocacy groups say legal protections for about and 5 million children who have disabilities could be undermined, and they worry that the new interpretation may herald a return to forced institutionalization.

The stage is also now set for a legal fight between advocates, states, and the federal government. Some states with ongoing lawsuits challenging disability rights requirements are already citing the DOJ opinion in hopes it will help them prevail.

In a case in Texas, for example, that a rule instituting a 1973 civil rights law that led to community and home integration of people with disabilities is costly and infringes on states’ rights.

People like DeSimone-Shabrack are especially worried because, they say, the opinion follows a spate of White House and Republican-led initiatives that have already begun eroding hard-won protections for people with disabilities.

“I’m worried. Am I going to have to put him in an institution, and what’s that going to be like for him?” said DeSimone-Shabrack, whose personal home care help was recently reduced from 30 to 18 hours a week by the state. “As he gets older, am I going to be able to care for him without this support?”

The Department of Health and Human Services remains steadfast in enforcing federal civil rights laws, agency spokesperson Emily Hilliard said in an email.

“Our commitment to ensuring that individuals with disabilities are treated with dignity, afforded equal opportunity, and are able to meaningfully access community services remains unchanged,” she said.

But advocacy groups say the DOJ opinion could have sweeping repercussions. The opinion doesn’t change existing law, but advocates worry that HHS and the DOJ could begin that mandate integration for people with disabilities.

They’re concerned that agencies will stop enforcing disability laws that ensure people aren’t. HHS, for example, has historically investigated disability discrimination claims at hospitals and in states that get federal funding, enforcing compliance with home and community integration through . Disability rights experts say those agreements could now be imperiled.

And some states facing financial pressures may roll back Medicaid services that enable people with disabilities to stay in their homes and communities — a trend that’s already happening following last year’s passage of the One Big Beautiful Bill Act, which cuts a projected from the safety net program over a decade.

Democrats are seizing on the opinion, which was released in a DOJ memo, to portray President Donald Trump and Republicans as a threat to people with disabilities. Sen. Tammy Duckworth (D-Ill.) and other Senate Democrats led the calling on the DOJ to rescind the opinion.

“The Trump Administration’s memo is an outrageous attack on the rights and independence of the disability community,” Duckworth said in a statement.

The DOJ didn’t return emails seeking comment.

According to the DOJ’s interpretation, regulations that give disabled people the right to demand certain services for daily living — bathing, mental health counseling, and financial budgeting help, for instance — and that require states to extend to mentally disabled individuals are unlawful, a view the agency acknowledged “is out of step with the common understanding of that decision within the federal courts.”

States may have legitimate reason to treat mentally disabled people in institutions, “including resource constraints, capacity limitations in community-based facilities, and safety concerns for both the patient and the community,” the memo reads.

The Supreme Court case, Olmstead v. L.C., has long shaped federal policy. And while it remains to be seen how courts will respond to the DOJ, some states seeking to curtail disability protections see the opinion as significant.

Consider the in federal court in the Northern District of Texas by Republican-led states arguing that an HHS rule about the integration mandate is unlawful. The lawsuit began with broader claims and 17 state plaintiffs. Following significant advocacy from the disability community, only Texas, Alaska, and Florida remain.

Following the new DOJ interpretation, the states filed documentation to inform the court about the memo as a new and relevant development. Similar documentation citing the memo has been filed in disability rights cases in Florida and New Hampshire, according to The Arc of the United States, a disability advocacy group.

Advocates for people with disabilities say the speed at which plaintiffs are citing the opinion underscores how it may be used to justify the erosion of protections.

“The administration’s attempt to dismantle decades of progress in community integration is alarming and inconsistent with federal disability rights laws and Supreme Court precedent as well as the critical enforcement work of prior administrations,” said , senior executive officer of legal advocacy and general counsel at The Arc.

Forced institutionalization led to human rights violations, segregation, and a eugenics movement in the late 19th and early 20th centuries that included involuntary sterilization.

Exposure of the abuses, legal battles, and an caused a major shift toward integration. Fewer than 1% of people with intellectual or developmental disabilities lived in state-run facilities in 2021, down from almost 30% in 1967, from the University of Minnesota’s , which maintains metrics on such long-term services and supports.

The Trump administration has already taken steps to reverse that trend, advocates say.

Trump signed that addresses homelessness by expanding involuntary treatment and institutionalization, reversing a championed by the Biden administration.

Much of the special education program office is moving from the Department of Education to HHS, raising concerns among advocates that the administration is reverting to a view that disabilities are a medical issue to be fixed rather than differences that can be accommodated.

And cuts in federal funding for Medicaid, a federal-state insurance program for people with low incomes or disabilities, also portend fewer resources and services. States have responded by reducing some optional benefits such as home health aides and support. In addition, qualifying for an exemption from the program’s work requirements, which take effect Jan. 1 in most states, will pose significant hurdles for people with disabilities.

The June DOJ opinion, advocates say, could accelerate the shift and result in court rulings that chip away at disability rights.

“While it doesn’t overnight change the law, it’s very troubling and very dangerous,” said , director of the Disability Rights Program at the American Civil Liberties Union. “It reflects a really deeply held disrespect for disabled people from this administration and a total lack of awareness of the lived experiences of people with disabilities who are living in their homes.”

Data shows there can be benefits to involuntary institutionalization. Relative to those voluntarily admitted, people with psychiatric illness who were involuntarily admitted “experienced greater improvements in symptoms and function,” according to a in Psychiatry, Psychology and Law, a peer-reviewed academic journal.

Deinstitutionalization has created new challenges. More hospitals have been forced to board people with psychiatric illness in emergency rooms because of a dearth of available beds. And moving people into home- and community-based living was supposed to be accompanied by an increase in outpatient care and treatment that never materialized, creating gaps in support.

But advocates for the disabled community say involuntary institutionalization and poses a higher risk of neglect and abuse.

, 57, of Cleveland, spent two years in a nursing home. She has spinal muscular atrophy, a genetic disease that kills motor neurons, leaving her able to move only part of her left arm and her head.

At the institution, she said, she felt bored and trapped and developed intense itching from scabies, which is caused by microscopic mites.

For more than a decade, however, she has lived in an apartment with the help of caregivers who come in the morning to get her dressed and ready and return to put her to bed. She works at a disability rights group, and her care is covered by Medicaid.

“The two years I lived in the nursing home, it was the most horrible time in my life,” said Kucera, who worries about the DOJ opinion on Olmstead. “My future is a shaking floor beneath me. With the stroke of a pen, they could get rid of everything I’ve built for myself.”

Ñî¹óåú´«Ã½Ò•îl Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on Ñî¹óåú´«Ã½Ò•îl Health News and is republished here under a .

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Medicaid Insurers’ Contracts on the Line in Tight Governor’s Race /health-industry/medicaid-insurer-contracts-iowa-governor-race/ Thu, 30 Jul 2026 09:00:00 +0000 /?p=2264719 One of America’s most competitive gubernatorial races could settle a heated argument over whether private insurance companies should run Medicaid.

The race is in Iowa, whose Medicaid program has been plagued with controversy since 2016, when the state hired national insurance companies to manage billions of dollars’ worth of benefits.

That shift was made by then-Gov. Terry Branstad, a Republican. With his executive order, Iowa joined most other states in privatizing the management of Medicaid, which covers healthcare for more than 67 million Americans with low incomes or disabilities.

The arguments have resurfaced this year during the competition to replace Republican Gov. Kim Reynolds, who was Branstad’s protégé and continued contracting with private companies to manage Medicaid benefits. Zach Lahn, the Republican candidate to succeed the retiring governor, supports the practice. Rob Sand, the Democratic candidate, wants to end it.

“It’s been a disaster,” said Sand, Iowa’s state auditor. “The number of complaints has been catastrophic.”

Pros and Cons

Supporters of privatization say the insurers, known as managed-care organizations, make Medicaid more effective and efficient. Critics contend the companies pad their profits by denying payment for crucial health services and by shortchanging agencies and professionals who provide care.

Iowa is among 41 states, plus the District of Columbia, that contract with outside companies to run at least part of their Medicaid programs. Overall, private insurers manage the benefits of more than three-quarters of Medicaid patients. Connecticut is the only state that has fully reversed course after privatizing its Medicaid system.

Sand has criticized privatized Medicaid for years. As state auditor, he alleging that the national insurers systematically deny or delay payment for services to which Medicaid participants are entitled.

He has vowed not to renew state contracts with the three insurers managing care for more than 600,000 Iowans on Medicaid, which is jointly financed by the state and federal governments. He would rather have state employees or nonprofit agencies review and pay bills from clinics, hospitals, and other healthcare providers.

Lahn told Ñî¹óåú´«Ã½Ò•îl Health News that Sand’s pledge to resume state administration of Medicaid “is the exact wrong idea.”

Lahn is a former activist for Americans for Prosperity, a national pro-business group affiliated with the Koch family. He contends that state governments and Medicaid participants benefit when insurers compete to serve them.

“There are very few things that government does more efficiently than the private sector,” he said.

Lahn, who is a businessman and farmer, emphasized that state officials should strictly enforce contract requirements, ensuring that the insurers treat Medicaid recipients fairly and make prompt payments to care providers. He also said he would bar insurers from using artificial intelligence systems to determine whether to pay for medical claims under Medicaid. “Iowans deserve to have a human looking at their case,” he said.

Sand said in a recent interview that he doesn’t want Iowa to fully return to a “fee-for-service” Medicaid system, in which hospitals, clinics, and other healthcare agencies would effectively be paid piecemeal for whatever services they provided. Instead, he said, state employees or nonprofit organizations could take over operation of a managed-care system, in which administrators review services to help ensure Medicaid participants receive what they need without wasting public money on ineffective services.

A few months ago, Republicans controlling the Iowa Legislature considered a bill to require the state to have a privately managed Medicaid system. That proposal would have blocked future governors from unilaterally shifting back to public management of the program. But the bill

Sand, a former assistant state attorney general, said he is confident he would have legal authority as governor to stop contracting with private Medicaid managers, although he cautioned that the transition would be complicated and could take time.

A man in light colored blazer and button down shirt holds a microphone. Behind him, campaign signs that say "MAKE IOWA HEALTHY AGAIN" are visible.
Republican candidate Zach Lahn says that if he were elected Iowa governor he would continue contracting with private insurance companies to manage the state’s Medicaid program because he believes they are more efficient than the government. (Erin Murphy/The Gazette via AP)
A man wearing a button down shirt and beige pants holds a microphone as he speaks to a small crowd of people.
Democratic candidate Rob Sand says that if he were elected Iowa governor he would end private management of the state’s Medicaid program, which he says has been a disaster. (KC McGinnis/Bloomberg via Getty Images)

A Toss-Up Race

National political observers say the Iowa governor’s race

This June, Lahn won an underdog primary campaign to beat a sitting congressman backed by President Donald Trump. Lahn gained Trump’s endorsement after winning the Republican primary. He is a vocal supporter of the Make America Healthy Again movement, led by Health and Human Services Secretary Robert F. Kennedy Jr., which aims to improve Americans’ diets and reduce environmental poisons.

Sand noted that Lahn’s past political activism included a failed 2014 attempt to defeat a proposal to cover more people under Montana’s Medicaid program.

Lahn said that at the time he worried the federal government would reduce how much money it would contribute to such Medicaid expansions, leaving states to foot much of the bill. He said he also didn’t want to see public programs such as Medicaid giving benefits to adults capable of providing for themselves. But he said those concerns have been allayed, partly by the Trump administration’s moves to require millions of Medicaid recipients to prove they are working, volunteering, or going to school.

If elected governor, he said, he would not try to reverse Iowa’s expansion of Medicaid, which happened in 2014 under Branstad.

Branstad also is the governor who decided in 2016 to hire private insurers to manage Medicaid.

Branstad, who declined to comment for this article, did not need the legislature to approve his momentous decision. He weathered controversy over the change, including allegations that the companies systematically denied payment for care that people with disabilities needed to remain in their homes.

Andy Schneider, a who studies health policy issues, said it’s understandable that many government leaders see an advantage in hiring private Medicaid management companies. Each state’s Medicaid program pays claims for hundreds of thousands or even millions of members, and administrators must scrutinize bills from thousands of hospitals, clinics, and other healthcare organizations. “That’s a heavy lift,” said Schneider, who worked in federal Medicaid administration when Barack Obama was president.

Schneider noted that Medicaid expenses are among the biggest parts of any state’s budget. The costs can vary dramatically year to year, he said, which is hard for legislators and governors to plan for. Management companies sign contracts for set amounts of money per enrollee, depending on people’s ages and health conditions. Managed-care companies say they can improve Medicaid members’ health and reduce expenses. But Schneider said have been unable to confirm or disprove those claims.

Federal law gives states flexibility in how they run their Medicaid programs, including whether they hire private insurers to manage the programs. “Unwinding those arrangements might take a little time, but there’s no question they can do it,” Schneider said.

Connecticut of private insurers to run Medicaid in 2012. to contract only with nonprofit insurers, starting in 2025, and that state’s governor doing away with private management altogether.

Gary Jessee, a former Texas Medicaid director who helped transition that state’s program into managed care, noted that most Americans’ health coverage is managed by some kind of insurance company, whether they obtain it on their own or get it through a government or employer plan.

Jessee now helps run a whose clients include Medicaid managed-care companies. He said states rarely talk about totally scrapping contracts with such companies. Instead, he said, states have options to change the contracts, including to increase oversight or limit profits.

Overall, Jessee said, managed-care companies help Medicaid enrollees obtain the services they need to stay healthy. But it’s hard to calculate how much money the companies save states, he said, because all healthcare costs have been rising, and new members of managed-care plans may at first use more services as the insurance companies encourage them to get regular checkups instead of waiting for emergencies.

Iowa’s Medicaid program is managed by three insurers: Molina Healthcare, Elevance Health subsidiary Wellpoint, and Centene subsidiary Iowa Total Care.

None responded to requests for comment for this article.

Catherine Gray of Des Moines helps run a Facebook page for families who use Iowa’s Medicaid system. Her adult son, John, is on Medicaid because of a disability. Gray said the managed-care companies have made it much harder for people to obtain services, including mental healthcare, dental care, and transportation to health appointments. Iowa’s shift to the private system was abrupt and chaotic, she said. “We know people have died,” she said.

Gray said she probably will vote for Sand for governor, even though she doesn’t agree with every nuance of his stance on Medicaid. She suspects many other Iowans who use the program will do the same. “They’ve really been put through the wringer for 10 years, and they’re exhausted.”

Ñî¹óåú´«Ã½Ò•îl Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on Ñî¹óåú´«Ã½Ò•îl Health News and is republished here under a .

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A Shrinking Safety Net /podcast/what-the-health-456-federal-safety-net-shrinking-july-23-2026/ Thu, 23 Jul 2026 17:45:00 +0000 /?p=2263410&post_type=podcast&preview_id=2263410 The Host
Julie Rovner photo
Julie Rovner Ñî¹óåú´«Ã½Ò•îl Health News Read Julie's stories. Julie Rovner is chief Washington correspondent and host of Ñî¹óåú´«Ã½Ò•îl Health News’ weekly health policy news podcast, "What the Health?" A noted expert on health policy issues, Julie is the author of the critically praised reference book "Health Care Politics and Policy A to Z," now in its third edition.

Enrollment in the federal food stamp program — the Supplemental Nutrition Assistance Program, known as SNAP — is down by more than 10% nationally, according to a new report, and in some states by as much as half. Those numbers are falling as states enact changes ordered by the GOP budget bill passed in 2025. The drop is much steeper than was predicted and could portend a similar fate for those on Medicaid, as states prepare to implement many of the same changes ordered for SNAP. 

Meanwhile, amid a rise in reported cases of the gastrointestinal ailment caused by the parasite cyclospora, federal public health officials once again struggle to explain to a confused populace how to stay safe. 

This week’s panelists are Julie Rovner of Ñî¹óåú´«Ã½Ò•îl Health News, Joanne Kenen of the Johns Hopkins Bloomberg School of Public Health and Politico Magazine, Alice Miranda Ollstein of Politico, and Margot Sanger-Katz of The New York Times.

Panelists

Joanne Kenen photo
Joanne Kenen Johns Hopkins University and Politico
Alice Miranda Ollstein photo
Alice Miranda Ollstein Politico
Margot Sanger-Katz photo
Margot Sanger-Katz The New York Times

Among the takeaways from this week’s episode:

  • Participation in the nation’s food stamp program is down, with children representing nearly half of those losing benefits, according to a recent analysis. Some states are showing much larger drops than others. The GOP-passed budget law imposes penalties for errors, leaving states spooked about the possibility of losing funding — and suggesting problems ahead for the full rollout of Medicaid work requirements next year.
  • President Donald Trump’s immigration crackdown is increasing pressure on the health system, in particular on the availability of home-based and long-term care workers — including those who fill critical roles such as serving food and driving patients to medical appointments. Research has shown that the presence of immigrant workers has a protective effect on the health of their charges.
  • Responding to revelations that doctors are reaping large payouts from the surprise-billing arbitration process, the Trump administration this week released information showing a spike in such payments and noted the need for changes to the law — without specifying what kind of changes. That law, the No Surprises Act, took effect in 2022 with the primary intention of shielding patients from big bills when they unknowingly receive out-of-network medical care.
  • In other news, the Pentagon is imposing testosterone tests for many service members. The cyclospora outbreak continues. And the Trump administration announced plans to withhold Medicaid funding from California and Minnesota over accusations of fraud.

Also this week, Rovner interviews Sen. Bill Cassidy (R-La.), chairman of the Senate Health, Education, Labor, and Pensions Committee, as part of the “How Would You Fix It?” series.

Plus, for “extra credit,” the panelists suggest health policy stories they read this week that they think you should read, too: 

Julie Rovner: The New York Times’ “,” by Arijeta Lajka, Isabelle Niu, Mark Boyer, James Surdam, and Dan T. Peters.

Joanne Kenen: Stat’s “,” by Adam Feuerstein.

Margot Sanger-Katz: NPR’s “,” by Andrea Hsu.

Alice Miranda Ollstein: Roll Call’s “,” by Ariel Cohen.

Also mentioned in this week’s podcast:

click to open the transcript Transcript: A Shrinking Safety Net

[Editors note: This transcript was generated using transcription software. It has been edited for style and clarity.] 

Julie Rovner: Hello, from Ñî¹óåú´«Ã½Ò•îl Health News and WAMU Public Radio in Washington, D.C. Welcome to What the Health? I’m Julie Rovner, chief Washington correspondent for Ñî¹óåú´«Ã½Ò•îl Health News. And, as always, I’m joined by some of the best and smartest health reporters covering Washington. We’re taping this week on Thursday, July 23, at 10:30 a.m. As always, news happens fast, and things might have changed by the time you hear this. So, here we go.  

Today we are joined via video conference by Margot Sanger-Katz of The New York Times. 

Margot Sanger-Katz: Hello. 

Rovner: Alice Miranda Ollstein of Politico. 

Alice Miranda Ollstein: Hi, Julie. 

Rovner: And Joanne Kenen of the Johns Hopkins Bloomberg School of Public Health and Politico Magazine. 

Joanne Kenen: Hi, everybody. 

Rovner: Later in this episode, we’ll have our “How Would You Fix It?” interview with Louisiana Republican Sen. Bill Cassidy, chairman of the Senate Health, Education, Labor, and Pensions Committee. But first, this week’s news. I want to start this week with what I’m calling the “Shrinking Safety Net.” The Center on Budget and Policy Priorities is reporting that overall participation in SNAP [Supplemental Nutrition Assistance Program], the nation’s food stamp program, is down by more than 4½ million people. That’s about 11% between last year’s enactment of the Republican budget bill and this past April. In Arizona, nearly half the recipients have left the rolls, and in Louisiana, Florida, and Oklahoma, it’s closer to 20%. Nearly half of those losing benefits are children, according to the analysis, and this is before some of the biggest cuts to the program even take effect. What does this mean, and what does it portend for Medicaid cuts that the SNAP declines are so much larger than were anticipated when this bill was passed in 2025? 

Sanger-Katz: The Republican bill put a lot of new burdens on states that to administer SNAP, and it created these penalties that if they had a lot of errors, then they were going to end up having to pay a much larger percentage of that total bill. And I think what’s happened is that that sort of spooked a bunch of states, and I think Arizona in particular, is facing some complicated politics around the program. And so I think in their effort to reduce the error rate, they’ve created a lot more paperwork for beneficiaries to prove that they’re eligible, because the state doesn’t want to take a chance that if they go back and check later, that there will be some mismatch and they will get dinged for making an error. So I think there are real lessons for what’s going to happen in Medicaid. The SNAP changes are happening a little faster than the changes to Medicaid. But I think there are a lot of the same incentives. There also are going to be increased penalties for states that have a high error rate in Medicaid, and there are going to be additional paperwork requirements added to Medicaid for people to prove that they’re complying with the work requirement and certain other things that didn’t exist before. 

Rovner: And as we’ve said a bunch of times before, states who are anticipating these cuts are already making cuts because they have to do budgets before some of these cuts take effect. Joanne, you wanted to say something? 

Kenen: No, I think that Medicaid changed suddenly on June 1, right? I mean, the coverage losses were expected under the legislation. That’s how the money was saved. CBO says people will lose coverage, and that’s where the savings were, by and large. The interim final rule that dropped â€” but we didn’t know how bad it would be. We didn’t know how many people, partly because states had a fair, they had certain things they had to do, but they had a lot of flexibility in how to do them. So that the coverage losses were an unknown, right? They might have been as bad as the liberal critics said, and they might not have been as bad as some of the defenders of the law said. It was a wait-and-see. On June 1, as we’ve talked about before on the podcast, CMS [Centers for Medicare & Medicaid Services] dropped an interim final rule, and it changed things a lot. And it basically took away a lot of the state flexibility. And instead of letting states say, “OK, you have such-and-such a disease. We know you have such a disease. We have your medical records. We have the coding from the bills from Medicaid. This is, clearly, you can’t work.” That’s no longer good enough. You can’t use their medical history. Every single person who’s sick on Medicaid, who can’t work, who contends they can’t work, has to go for a workup by a physician. Right now we’re not sure if it’s other health providers, who really isn’t trained in disability medicine. Manatt just came out with a study just a day or two ago saying that the coverage losses are going to be much higher than anticipated. And there’s a lot of hurdles for individuals, and there’s a lot of costs for the states. So, like, the SNAP is now, like, OK, that was SNAP, and this is Medicaid. Now it’s just much more alarming to watch what happened in SNAP. 

Sanger-Katz: I think another lesson from SNAP is that we’re going to see a lot of state variability in the outcomes. You know, these are both programs, they’re federally funded, but they’re administered by states, and states have different capacities. They have different bureaucracies. They have different tolerances for spending money on these programs. And we’re seeing, even in SNAP, there’s kind of like people are losing coverage everywhere. But like in Arizona, it’s like half of the people. And I think that what we’re likely to see something similar play out in Medicaid, where some states either are just not willing to spend the money, or they’re very scared of penalties, and so they’re like really have very strict criteria. And other ones just, like, won’t be good at it, and they’ll make a lot of mistakes, and that will cause people to lose coverage too. I think every state is different. Every state is building this from the ground up, and there are going to be different levels of policy planning, risk tolerances, and just like general glitchiness as they roll it out. And I think we’re seeing that in SNAP. It’s a lesson of what we’re seeing now that will carry over almost certainly. 

Ollstein: And to that point, I think, in some places, like Joanne said, you are going to have to, you know, basically get a doctor’s note in order to keep your Medicaid coverage. But other states are trying right now to come up with some kind of formula to make that not have to happen. So saying, you know, if you have X many inpatient visits per year and Y many outpatient visits per year, or you have this many drugs that you’re on, then that is enough proof that you are too medically frail to work part-time. And so they’re trying to come up with ways to just pull it from data and not have to rely on patients and providers and give them this extra burden. But we’ll see if that’s approved by CMS. We’ll see if that’s successful. I mean, CMS’ guidance left states a little bit in the dark about how to operationalize this. 

Rovner: Well, that is the perfect setup, I would say, for my next question, which is we have a couple of stories from my colleagues here at Ñî¹óåú´«Ã½Ò•îl Health News about complications to come from the Medicaid cuts, particularly the work requirements that states need to have in place by next Jan. 1. One of the stories, by Sam Whitehead, is about doctors who are worried about being swamped by patients who need medical documentation that they’re too frail to be subject to the work rules. Said one doctor in the story. “We’re trained to learn about someone’s symptoms, make diagnoses, treat them. We are not trained to make these kinds of work determinations.” The other story, by Rachana Pradhan, Samantha Liss, and Kate Wells, is about how an automated eligibility system from IT giant Deloitte is rejecting eligible people with disabilities in several states, including Michigan, Tennessee, and Texas. Deloitte works on Medicaid eligibility systems in more than half the states. It’s heavily involved in creating these IT systems for their work rules. Fair to say, both of these things, as you guys were all leading up to, do not bode well for what’s about to happen to Medicaid. 

Kenen: No, and an additional factor, it’s not just Deloitte. I mean, states had contracted with the vendors. They didn’t have a lot of time. This bill was signed into law just about a year, almost exactly a year, ago, and they had 18 months to get ready. It’s Jan. 1, 2027. This June change to the rules means they have to really rework a lot of the tech they were doing, and they were given seven months. So is this as big as healthcare.gov? No, but it’s complicated, and the sort of blueprint and tech plans they were doing now have to be modified. And they’re still waiting on more guidance. There are still unknowns. 

Rovner: For those who don’t remember healthcare.gov â€¦  

Kenen: How can anybody not remember healthcare.gov? 

Rovner: There were people who were not around in 2013, Joanne, when healthcare.gov rather dramatically failed to launch. Sorry, Alice, I interrupted you. 

Ollstein: Yeah, no, we did some reporting about this weeks ago, and basically experts told us, Look, it’s problematic if these determinations are left up to individual physicians. There can be biases. Physicians aren’t trained to make these kind of determinations, like you said. People might not even be able to reach a doctor and make an appointment to get that outcome. But they’re saying if it’s not up to physicians, that could be even worse. If it’s up to some sort of algorithm or some sort of state bureaucratic office that never even meets the person and just makes a determination, and they may not know how to appeal it. And so states are worried about it being a lose-lose situation. 

Rovner: Yeah, well, in the Deloitte story, that’s exactly what it was. It was, you know, it was basically an automated system that was bouncing eligible people, either bouncing them out or putting them in inappropriate programs for which they weren’t eligible. They were having trouble finding a real person to fix what was obviously a mistake. 

Sanger-Katz: And I think one thing that both of these stories really emphasized to me is that whatever you think about the merits of this policy change, you know, like I think there are lots of Americans who think that it is reasonable to have a work requirement for Medicaid. And I also think there are lots of people who think that you shouldn’t just get out of that because you have a medical diagnosis. That there should be some reason why you can’t work. If we’re requiring people to work, maybe we want to require people to demonstrate that they can’t work, to get an exception. But whatever you think about the merits of those arguments, this is a monumentally difficult task for states to implement. This is not an easy policy. There is no all-knowing eye that can sort of look over the Medicaid population and decide who is eligible or not eligible according to these criteria. States have to create rules. They have to create what kinds of proof they’ll allow. They have to build computer systems that can sort people and that can make these determinations. And all of that is new and is very difficult. And is very slow. States, in most cases, don’t even build their own computer systems. They work with these contractors that do it for them, and the contractors have a mixed track record in really executing in a really clean way. So, I just think, you know, when you talk to people about this, I feel like we always talk about this in healthcare. There’s like the legislation. There’s like the idea, and Congress is trying to get the idea. These are the people that we want to get Medicaid, and these are the people that we want to encourage to work in order to maintain Medicaid. I think on the theoretical level, there’s that. But then there’s like the nitty-gritty implementation, and that’s like the regulatory process, that’s the state government, that’s the procurement, that’s the contracting. And I just think there’s a lot of sand in the gears of that. This is actually not easy for states to do, and even the states that are devoting a lot of resources to it and want to get it right, and even the states that really believe in the goals of the policy are probably like just bumping into a lot of the difficulties now. 

Kenen: And many of the people affected have chronic diseases; they’re up and down. You can have good periods when you’re working. You can have bad periods when you can’t, and that’s the nature of chronic diseases for many, many, many individuals. It’s inconsistent. So if you go to the doctor on Jan. 1, that doctor really doesn’t know. I mean, this is true of mental health as well. You know, how long can you work? How consistently you work? There’s just going to be all sorts of problems, and I promise to stop there. 

Rovner: OK. Well, also this week there are two immigration-related safety net stories. First, the Trump administration has officially rescinded the Biden administration’s rewrite of the so-called public charge rules, which are designed to ensure that legal immigrants are financially self-sufficient. The new rules, or the lack thereof, give immigration agents far more leeway to decide on their own who might or might not become dependent on government benefits. Alice, you covered this back in Trump I. It ended up with lots of people who were actually eligible for benefits not using them because they feared becoming or being deemed a public charge when applying for a green card or more permanent immigration status. Any reason to think the same thing isn’t about to happen again? 

Ollstein: No, there is no reason to think that history will not repeat itself. Although I will say that the policy now is not exactly the same as it was during the first Trump administration. The new policy just gives a lot of discretion to individual immigration officers to make a determination, looking at, like, the totality of someone’s circumstances. And so, you know, Medicaid and some of these other safety net programs that people are legally eligible for didn’t used to count against someone when they were applying for a green card, and now they could. Again, it’s not mandatory that, Oh, if you’re enrolled in Medicaid, automatically you’re barred. But it is something that an immigration officer would be allowed to consider. And so, yeah, a lot of concern not only from the immigrant ICE [Immigration and Customs Enforcement] community, but from states. I mean, this could affect state budget if people are going to need to turn for uncompensated care to other providers. There’s concern from the public health community about if people don’t have coverage to get vaccinated and to get checkups. It’s not like there are islands of immigrants. This is folks [who] are incorporated into our society. We live in a society, as we discovered during covid, and what impacts some people impacts everybody. 

Rovner: Yeah, and, I think as Margot said, it’s one of these things where the concept sounds great, and the carrying it out is a lot harder. Well, also a couple of weeks ago, we talked about how nursing homes and assisted living facilities are freaking out about the repeal of temporary protected status for immigrants from Haiti and Syria because so many of them work in the long-term care space. This week,  about how this immigration crackdown is reaching even further, to seniors who don’t yet need medical services but still require help with routine activities, who live in these, you know, senior buildings. There’s already a labor shortage for home health aides and others in eldercare, which is generally very hard work for very low pay. This could spiral into a real crisis. We’re going to end up with Gen X and millennials having to take care of their own baby boomer parents. 

Sanger-Katz: There was a really interesting study that was published a few months ago from Jonathan Gruber, the economist at MIT, and some of his colleagues that basically found that increases in the population of immigrants in a given place actually reduced mortality among Medicare beneficiaries. It seems really clear that immigrants are a really important part of the caregiving workforce in America right now. And, as you said, Julie, it’s home health workers, it’s nursing home employees, it’s people who work in hospitals, and it’s also people who are doing some of this kind of, like, informal elder care, helping out in assisted livings, helping people at home. You know, they may not be providing healthcare services, but they are helping elderly people who have healthcare needs. 

Rovner: It’s the people who work in the dining rooms. It’s the custodians in these senior buildings. I mean, it’s the people who, you know, who help people get around and drive them to doctor’s appointments. 

Sanger-Katz: I felt like that study â€” I was really struck by, because you get the sense that it’s not just that we see these people in these jobs, but that having more of them around actually seems to have a health protective effect for the people that live there. Because I think it does make it easier to staff all of these jobs and to staff them with people who are competent and who want to do that kind of work. 

Kenen: And who have language skills. There’s actually been studies showing that it helps to have more Spanish-speaking staff in nursing homes and rehab facilities. 

Rovner: All right. Well, meanwhile, Margot, since you are here, let us talk about surprise medical bills. A few weeks ago, we talked about the blockbuster story you wrote with Sarah Kliff about how some doctors were getting gigantic multiples of what Medicare or private insurance would have paid through the negotiation system that was set up to settle claims between insurers and providers. Now the administration says they may need to fix it? Catch us up. 

Sanger-Katz: Yeah, I mean this was a bit of a surprise to me, I will say.  that sort of gave us a sense of the scope of the system. Wasn’t hugely surprising, but the top-line numbers are. It looks like the amount of money that this system has awarded to doctors and other healthcare providers increased from around $4 billion in 2024 to $14 billion in 2025. So you can just like really see there’s been a huge growth in the number of cases, but it also seems like doctors are winning higher awards per case. And so, what’s happening is that the overall cost of the system has really ballooned. The Trump administration has said very little about this. They did finalize one regulation that had been proposed in the Biden administration that was kind of technical fixes. And yesterday they said that people are gaming the system and that they need to, quote, “clean it up.” So I do think this is the first indication we’ve seen that there is concern by Trump officials that there may be a problem with this arbitration system that doctors are using to resolve these disputes. But they provided no specifics at all about what they will do, what policy avenues they will pursue, and, you know, in a lot of my conversations with the players in this system, people have not identified, like, really obvious, easy places where the regulators can make big changes. I think there are some small changes that the regulators can make, but almost everyone that I talk to about this problem seems to think that Congress probably has to make changes to address some of the excessive spending that we’re seeing. And there seems to be very little appetite for that. So I’m really looking forward to seeing what it is the Trump administration has in mind, what kinds of policies they will pursue here. But, based on what they’ve said so far, I don’t know what they’re going for. And I would say, based on what I know about this topic, it is not obvious to me what the easy levers are for them to pull. 

Rovner: And I will add that I â€¦ in my interview with Sen. Cassidy, I asked him about this, and he kind of demurred, suggesting that, as you will hear, that, Well, if we can fix problems with price transparency in general, that could fix this problem. Because then people won’t end up going to the doctors who are going to go to arbitration and win, you know, multi-$100,000 awards from these arbitrators. But I think you’re right, Margot. I think we’ll see. 

Sanger-Katz: I will just say, to push back on what Sen. Cassidy apparently told you, is one thing that really has worked about this law is patients are completely protected. In these situations where these large arbitration awards are being generated, patients are never asked to pay more than they’re in network cost sharing. And so I don’t know how realistic it is to ask patients to change their shopping behavior in order to resolve these high payouts. I think that the incentives probably really have to be focused much more on the insurance companies and the healthcare providers themselves. 

Rovner: Yeah, well, we will see how that goes. All right, next: testosterone testing at the Department of Defense/War. Really. Secretary Pete Hegseth has ordered that male service members over age 30 will be required to be screened for, quote, “testosterone deficiency” annually, although testosterone replacement therapy, if a deficiency is found, will be voluntary. Hegseth said this is necessary for troops to operate, quote, “at their absolute best.” But doctors warn that rather than maintain military readiness, inappropriate hormone therapy can cause infertility or increase the chance of heart rhythm changes and bone fractures, and that screening at age 30 is inappropriate anyway. And in addition to everything else, isn’t this basically gender-affirming care? I thought this administration was against that. 

Ollstein: So basically, everything that is getting restricted for trans people is much more widely used by cisgendered people. So most young people who are put on puberty blockers are not trans. Most people who get top surgery are not trans. And most people who, you know, use these hormone treatments are not trans. And so, yes, this is an example of that double standard that, you know, is seen in other areas of medicine coming into play for sure. Not to mention the medical risks that you point out. It’s just sort of a cartoonish idea of what masculinity entails and what contributes to it that doesn’t really align with science. 

Rovner: Yeah, I’ve seen just an enormous amount of head-scratching about this whole thing, I mean, I’m just wondering, is he trying to deflect attention from other things going on at his department? 

Kenen: No, there’s a whole subculture that’s all about more testosterone. We should be clear that there’s some people who do, medically, have low testosterone, just like there’s some people who medically have low thyroid or other endocrine problems. I mean, you â€¦ and there’s medication for that, and it’s appropriate if you are clinically, you know, in that category. 

Rovner: Right. And having low testosterone can cause medical problems that can be addressed. 

Kenen: Right. So if you are really low â€” like not, sort of, what the “Bro World” says is low â€” but if you’re what, you know, a medical lab says is low, yes, that’s an appropriate, it’s an appropriate treatment. But there’s this whole sort of cultural thing that more testosterone is better. And it’s just one of these things â€” like with many other supplements, but this is a little bit more complex â€” it has taken off and sort of taken a cultural thing of its own. I mean, I saw a quote and I wrote it down, and I forgot to write down where I saw it, so I apologize for that. It might have been The Times, but I don’t know. And it’s a great quote from a physician who said, “If you just dole out the testosterone, the testes will shrink, and you can’t reliably count on them coming back.” That’s just sort of, like, that’s not penetrating the cultural idea to start T-maxing. 

Rovner: Right, more testosterone is better. 

Sanger-Katz: Although I think our Health and Human Services secretary has also said that he himself takes testosterone, so I think it’s not just the defense secretary. I think there are a number of high-level Trump officials who seem to be enthusiasts for this particular kind of treatment. 

Rovner: All right, we’re going to take a quick break. We will be right back.  

So the public health panic of the week concerns cyclospora, a parasite that’s hard to detect, hard to get rid of, and causes a very nasty gastrointestinal illness. Cyclosporiasis, which is the ailment the parasite causes, is more common in the summer because it tends to infect fresh produce, mostly lettuce and herbs, and thin-skinned fruit like berries. But this summer, we’ve seen an explosion of cases (pun intended): more than 11,000 in 41 states. It’s maybe up by the time I’m even saying this. Normally, the FDA and the CDC [Centers for Disease Control and Prevention] would be all over this, trying to trace back where the infected food came from. But we know that both agencies have lost a lot of scientific staff in the past year. Over the weekend, the FDA announced that it had detected the parasite in lettuce from Mexico that wasn’t part of an initial lettuce recall that was linked to Taco Bell and many large grocery chains. Then the FDA backtracked, saying, “Yeah, it was a false positive.” But apparently, that doesn’t mean that the Mexican lettuce from produce giant Taylor Farms is not implicated. Now everybody is confused about what’s safe to eat. Joanne, you wrote an entire book about public health communication. How are we still so bad at communicating this kind of thing?  

Kenen: This is a really difficult thing, right? It’s very hard to track because it takes about two weeks for you to get symptoms. And then now, if people are sick, they’re going to sort of think that might be what they have. But you know, a few weeks ago, before there was publicity, you know, we all get tummy aches, right? And you don’t necessarily seek medical care. In this case â€¦ it can really go on and be very severe and can last, and people will seek medical care. But for some people, it’s not as â€” we don’t really know how many people are affected, and we also don’t know how many people are currently infected and â€¦ not yet showing symptoms. It’s big; it’s thousands. But the confusion here, I mean, first of all, you know, as you noted, CDC and FDA have both had cutbacks. There’s fewer staff. There’s fewer resources. This is really confusing, and it’s been made more confusing by absolutely everybody. There have been people who â€¦ there’s been political contacts. Taylor Farms has contacted the White House. … When the FDA found that false sample, they really did not communicate it that well. They didn’t say, This is one sample that might have led us to find yet another source, but what we’ve told you is already true. And follow our advice. They just â€¦ made it sound like it really wasn’t Taylor Farms. Then there was another thing where Taylor Farms said the FDA apologized. The FDA said they didn’t apologize, and then the Taylor Farms got a lot of attention because it deleted its social media posts. But I went onto their website last night, and it’s still there. They’re still saying that the FDA apologized. It’s confusing, too, because it’s primarily iceberg lettuce, but every summer there’s some of this, and it’s from cilantro, it’s from basil, it’s from raspberries is a biggie. So the CDC isn’t saying, OK, a lot of this is coming from Taylor Farms, but really be careful about these other things because we’re still investigating. I actually saw, I won’t identify the reporter or the publication, but in a major national report, major national paper, once the lettuce was identified at Taco Bell, this person said, “Oh, I’ve had these raspberries in my refrigerator. I’m glad I can eat them now.” Well, we don’t know that they can eat them now, you know. And then there’s the usual rumors that â€¦ everywhere there’s rumors, right? I mean, you can’t stop them. They just proliferate. So I think everybody has made a communication mistake every single step of the way. And then you have you know conspiracy theories about absolutely everything that, you know, it’s not really the lettuce. And then people think â€¦ Oh, we’re hearing it was Taco Bell in five states. Well, if I didn’t eat Taco Bell, I’m OK. No, because you could have bought the lettuce, and not all the lettuce is called Taylor Farms. And then people think, Well, if I go to a fancy organic store, it’s OK. No, you know, just don’t eat raw lettuce. The other thing I learned is it’s, like, the contamination. It’s really, really difficult. â€¦ If farmworkers are not able to, like, wash their hands well, and they were using hand sanitizer. That’s not good enough to get rid of this stuff. Chlorine isn’t good enough to get â€” this is really a hard parasite to deal with. 

Rovner: Yeah, basically, I think I’ve heard them say, If you want to eat lettuce, buy a head of lettuce and throw away the outside three layers, and then eat the rest

Kenen: Right, and then wash the rest of it. You’re also seeing all these recipes now online for how to stir-fry your lettuce. 

Rovner: That’s true, yes. Cooking does kill the parasite. 

Kenen: I’m growing my own. That’s my solution. 

Rovner: I’ve been picking my own. 

Kenen: Right, right. But I ran out, so I just had to plant more, but …  

Rovner: All right. Finally, this week at the Department of Health and Human Services, Secretary Robert F. Kennedy announced the latest in the department’s fraud crackdown: the withholding of more than a billion dollars in Medicaid funds from Minnesota and California. HHS is accusing those Democratic-governed states of failing to properly document shared Medicaid spending, mostly for home care services. Minnesota officials told Stateline that the feds have yet to explain exactly what deferrals are for or how they calculated the amount. Similarly, California officials said HHS is targeting the state for political reasons, and that home care actually saves the federal government money by keeping people out of more expensive nursing homes. Now, states and the federal government have been fighting over fraud since the beginning of the Medicaid program, but this is really the first time HHS has withheld this level of funds. I feel like this story is kind of flying under the radar. It’s a big deal. We spent the whole first part of this podcast talking about how states are having to spend time and effort and money to get these work requirements ready. I mean, this could really cripple some states’ Medicaid programs, couldn’t it? 

Sanger-Katz: Yeah, this is real money, and this is a kind of rescinding of money that Centers for Medicare & Medicaid Services really have almost never done before. I think it’s somewhat unpredictable to state. At least with, like, the work requirement, there’s some policy planning. There’s some awareness of what the rules of the road are and things that they can do. I think there’s a couple things going on here at once. One is that there is a lot of fraud in Medicaid. The administration is pointing to a problem that is real. I feel like the comments of the California officials that home-based care for elder people saves money by keeping people out of nursing homes â€” that is true, but only if those services are actually being provided to people. If there are fraudulent services in that sector, which we know that there are, that’s not really benefiting anyone’s health. That’s just wasting money and giving it to criminals. So, I think the administration feels like this fraud message is really powerful for them. There’s obviously a lot of political discussion about healthcare affordability, how healthcare has gotten so expensive, and I think neither party has a really great policy answer for that. I think the Trump administration is focusing on this one. They’re saying, “Well, this is just pure waste. If we can get this pure waste out of the system, that will lower the cost of healthcare.” And so I think they’re kind of banging this drum over and over again. But I don’t know that this particular mechanism is helping states actually reduce fraud. I think it’s more punishing states that are seen as political enemies, and I do think that the loss of those dollars is really going to affect the functioning of those programs. 

Rovner: Well, meanwhile, a new poll from my colleagues here at KFF suggests that the administration’s focus on health fraud rather than healthcare cost writ large might be politically misplaced. According to the poll, nearly two-thirds of voters think the administration’s anti-fraud efforts towards Medicaid are motivated mostly by politics, and fewer than half think the effort is likely to save taxpayers money. The poll also found that more than two-thirds of respondents, including half of Republicans, say that ensuring Medicaid beneficiaries can get the care they need is a higher priority than preventing fraud. That doesn’t feel like a really winning political issue, does it? 

Kenen: No. And another thing that was interesting in that poll, I mean, the way Dr. [Mehmet] Oz speaks about it is that there’s a lot of people cheating, and it’s sort of the welfare-ization of Medicaid. You know, these are all lazy bums. I mean, it’s not that there’s nobody dishonest on the rolls in any federal program. None of us would say that, but most of the fraud is from providers, and that’s clear. These, you know, huge rings of nursing home fraud in Brooklyn, and â€¦ every few years there’s this enormous one. And I thought it was interesting on the KFF poll that the majority across both parties actually think it is the providers. It wasn’t a huge majority, I think it was 55%, thought it was the providers, not the individuals. And but also, as you mentioned, Julie, they’re retaliating against blue states. 

Rovner: Yeah, yeah. I mean, this is their, sort of, This is how we’re going to address healthcare affordability, says this administration, and the poll suggests that maybe that’s not a really good way to go about it. All right, that is this week’s news. Now we’ll play my interview with Sen. Bill Cassidy, and then we will come back with our extra credits. 

I am so pleased to welcome Louisiana Republican Sen. Bill Cassidy to “How Would You Fix It?” Sen. Cassidy is a physician and the chairman of the Senate Health, Education, Labor, and Pensions Committee, which has been churning out health legislation of late. Sen. Cassidy, thanks for taking the time to join us. 

Bill Cassidy: Julie, thank you for having me. 

Rovner: I mostly want to talk about your “MVP” health agenda, but first, just a little bit of current events. President Trump has announced a 100% tariff on imported generic drugs starting in two years, and a 200% tariff after that, all in an effort to move that drugmaking back to the U.S. Do you think that’s a good idea, and will it work? 

Cassidy: Is it a good idea? It depends on whether or not it increases our national security and whether or not it actually ultimately ends up giving patients the price of generic drugs at an equal price, and thirdly, whether or not we avoid any contamination or other products like that. The national security might be something worth paying for. We know, God forbid, [if] we ever get in a hot war with China, the question is, can we bring generic drugs, which are principally made across the Pacific, across the Pacific to help us. So there is that national security aspect of it. That’s No. 1. No. 2, though, I’ve gone to a Dr. Reddy’s, which is owned out of India, used to have a generic site in Shreveport, and the cost basis of producing drugs in the United States was just significantly more than in India. And so it may be that consumers pay a little bit more. I’m hoping there’s an economic analysis showing if the cost-benefit ratio is adequate. I will finally say that I do think it’s important that we have some of our drugs produced here. I’m told that drugs like penicillin and cephalosporins are now almost all made in China. Again, going back to: Do we want China to have that sort of leverage for these drugs to be produced principally, maybe 99%, over there, and we don’t have access to them if tension rises between the two countries? I do think that is something worth investing in. 

Rovner: So also this week, U.S. measles cases have now topped last year’s total and are at the highest level in 35 years. You made it clear, even during HHS Secretary RFK Jr.’s confirmation hearing, that you see the risks of weakening federal policy and public confidence in vaccines. Do you think that Kennedy ever intended to keep the promises that he made to you around ACIP [the Advisory Committee on Immunization Practices] and the vaccine schedule? And what would you say to doctors who now place some blame on you for creating an environment where anti-vaccine sentiment is echoed by the nation’s health department? 

Cassidy: Well, first, I can’t get inside somebody’s mind. If they agree to guardrails and disregard those guardrails, you can judge me. But you may decide my judgment wasn’t very good, but I don’t think you can say I acted in bad faith. Why? Because I’m pretty sure that RFK was going to have the president’s ear whether he was in office or not. In office, we had guardrails that I had the expectation would be kept. Out of office, but with influence, there’d be no guardrails. So sometimes in politics and in life, it’s not a black-or-white choice. It’s not like, oh my gosh, this is the pure driven way, and this is, you know, darkness and whatever. No, it is something trying to decide what is the best with countervailing influences. I think doctors particularly know that, because it’s often the cases we care for patients that you have to come to something that you don’t quite yet know what the next step is, and you’re working towards it. Perhaps they’ll have more sympathy if they put it in light of their own medical practice. 

Rovner: So, are you going to try to have him back and keep pushing him to keep the promises that he made? 

Cassidy: I have made a request that he come back before the committee. 

Rovner: But we haven’t heard back yet? 

Cassidy: Not had a confirmation that he will yet. 

Rovner: Well, onto our bigger topic. You’ve proposed something you’re calling the Money and Value for Patients Agenda, or MVP, as a replacement, I guess, for the Affordable Care Act. How would that work? 

Cassidy: It’s not a replacement for the Affordable Care Act. It is only restricted to that which is in the employer-sponsored insurance market. And if we can look at where people are getting subsidies for their health insurance â€” you have a sophisticated audience, so I’ll speak this way— we can see that if you’re on Medicaid, you basically get 100% of your healthcare costs paid for. If you’re on the exchanges and less than 250% of federal poverty, it’s like 85%-plus. And then after that, it’s your marginal tax rate. If you’re at the 15% marginal tax rate, you pay your premium on a pretax basis, which means you get a 15% break. If you’re at the 37% marginal tax rate, much wealthier, you get a 37% pretax break on the money you paid for your premium. So the people who are middle-income on employer-sponsored insurance are the ones who are getting the least assistance from the tax code or the federal government to purchase their health insurance. What?! The people who are trying to do it the best â€” they’re working; they’re not on Medicaid. Some people on Medicaid work, but many don’t. The people who are working are the ones who get the least assistance. So, what can you do about that? What I would do in my MVP plan is give an advanceable tax credit to those on employer-sponsored insurance below a certain marginal tax rate, and if you’re below some percent, you would get it. 

Rovner: So very rich people wouldn’t get this. 

Cassidy: No, it’d be like less than 22% marginal tax rate. And so those are the people who need the help. Let’s focus where people need help. And that’s negotiable, but that’s just an example. Under my calculations, a family of four could get up to $2,000. Now, why is that important? Many families, maybe most, will not have more than $2,000 of out-of-pocket expense in a given year. Now, one year they may â€” the wife’s pregnant, or the son, you know, gets in a car wreck â€” but most years they’ll have less than $2,000. So that would potentially cover all of their out-of-pocket, particularly if you couple it with the price transparency legislation we’ll discuss in a second. And because the family now has $2,000 to cover their out-of-pocket, they can choose a policy with a higher deductible, which means a lower premium. OK, so if currently the average deductible for a small-business plan is about $3,000, you give them $2,000, they’re going to choose a $5,000 deductible, and that will lower their premium substantially. I like to speak, Julie, of the cost of being insured, which is not just your premiums, but your copays and your deductible. We’re given $2,000 for that copay and that deductible, which allows you to take a lower-cost premium, and you put it all together. And my favorite economist, ChatGPT, says that you could potentially save $5,000-$6,000 per year, per family, and that makes a significant, meaningful difference in their ability to afford life. 

Rovner: So, is this in addition to employer coverage, or would this be instead of employer coverage? 

Cassidy: No, this would be in addition to employer coverage. Right now, we see that small businesses are dropping coverage, and so this would, obviously, if the employee is choosing a cheaper plan because the plan they choose is a higher deductible, then it becomes less expensive for the employer. And so they can better afford to continue to offer. So this is a way to help that small business as well. I’ve talked to a small-business owner back home, several small-business owners. It’s becoming very difficult for them to give salary increases and/or hire more people if they continue to provide health insurance. So, if we’re able to take a little bit of that burden off of the employer to give an adequate insurance policy, then hopefully they can increase wages and/or hire more people and expand their business. So it’s a benefit not just for the family, but also for their employer. And frankly, the federal government ends up earning more tax dollars because, not getting too complicated, but the less money you’re spending on a pretax basis, the more money going into your post-tax paycheck, the more taxes you pay for payroll tax, etc. 

Rovner: I’m thinking of private equity and some of the gaming of one of the laws that you were instrumental in getting passed to prevent surprise medical bills. How do you try to protect consumers from people in healthcare who are literally just in it for the profits? 

Cassidy: Why not price transparency? If you don’t know the price of something, you can’t get a better deal. And that’s whether you’re the patient or whether you’re the business. And so the initial step to make sure that people are getting their best deal is price transparency. And, by the way, the wonderful thing in the last year or so, I’ve been exposed to people doing wonderful work, and people are developing apps on the phone, and you could say, “Hey Siri, where’s the urgent care center near me? What is their price schedule for a routine earache?” OK, I’m going to go to this one near me because it’s $50, not $150. So I go there, and then I come out with a prescription. “Hey Siri, where’s the cheapest place to get this prescription for amoxicillin, 500 milligrams BID?” Siri tells you, or the app tells you, not Siri, but the app. And these are, like, being developed now. I mean, this is not â€” no, this is now. And so if you couple money in the pocket with price transparency, giving the individual the ability to determine where to go to get the best price â€” and we have some other provisions in there that protect the patient, a lot of provisions â€” then you are going to bring value to the patient. That’s part of the solution in the employer-sponsored insurance market. 

Rovner: Sen. Bill Cassidy, thank you very much. 

Cassidy: Thank you, Julie. 

Rovner: OK, we’re back. It’s time for our extra-credit segment. That’s where we each recognize a story we read this week we think you should read, too. Don’t worry if you miss it. We will post the links in our show notes on your phone or other mobile device. Alice, why don’t you go first this week? 

Ollstein: Yeah, I have a story from our friends over at Roll Call. This is “,” by Ariel Cohen. And this is about a recent decision that, like so many things these days, flies under the radar because there’s so much going on at once. And just in the category of grant cuts, there’s so much going on. So this is about the sudden slashing of a bunch of HIV prevention grants to community organizations. They’re now saying they’re going to redirect the same funding to state and local health departments, and those state and local health departments can, if they want, then pass it on to the community organizations. But 1) that’s, you know, more bureaucracy, more headaches. But also, what this article smartly points out is that that then makes the community organizations no longer eligible for 340B, which was helping them buy all of this medication much more cheaply. And so losing that designation, losing those grants, is a really big deal for these groups that are trying to afford doses of expensive medication like PrEP to distribute to communities. 

Rovner: Yeah, again, some of these things that sort of look small end up with far-reaching consequences. Joanne. 

Kenen: This was the first extra credit that actually made me invent a word, which was “yikes-maxing”! You know, like, it was so wild. It’s from Stat by Adam Feuerstein. I probably have that wrong. 

Rovner: Feuerstein. 

Kenen: OK, and the headline is “.” So, for 20 years, this guy â€” he was a doctor. He was convicted of one assault. He was pending trial on another sexual assault allegation, and he disappeared right before his trial. He left notes that he was going overseas, transferred property to his kids, etc. Well, he did not go overseas to live as a fugitive. He was right here posing as a cancer expert, and he worked for two biotech companies. And he purported to have expertise in all this very advanced, cutting-edge drug development for cancer, which was not his actual background. So, like, how did he get these jobs? Why wasn’t he vetted better? He was finally tracked down on a yacht called the Silver Lining, and, in fact, the alleged assault, because one of them wasn’t ever went to trial, was on yacht. Yachts were his, apparently, his favorite locale for his alleged assaults. So he has been arrested, but it’s not just like this guy needs to go to trial, but, like, how did these companies â€¦ did they even look at his LinkedIn? I mean, he was using a fake name. How did this happen? It’s a huge scandal, and it’s also a great yarn. 

Rovner: I can’t wait to see the movie that somebody’s going to make out of this. Margot. 

Sanger-Katz: I wanted to recommend an article from Andrea Hsu on All Things Considered and NPR. “.” And this is a story about a growing number of men who are entering the nursing profession, and, in particular, a look at the University of Alabama in Birmingham that is really trying to recruit men into the profession. And you know, I feel like caregiving professions have traditionally been kind of a female domain, but I think there’s a new openness by men to enter these careers, which I think can be very fulfilling. They’re very secure. They’re relatively high-paying. My colleague Claire Cain Miller did a story in the Pacific Northwest almost 10 years ago, I think, where she interviewed a number of male nurses about their work and had these beautiful portraits shot of them, and it just is a piece that has stayed with me for a long time. Just thinking about these men in these caregiving roles and why some of our, like, more conventional ideas of masculinity prevent men from entering these professions that I think can be really great careers and really fulfilling for them. So I just thought this new story was really good. I was interested in what this university is doing to recruit men, and I think the idea of male nurses and a nursing profession that is more gender-diverse is really interesting. 

Rovner: And in 2026, unlikely to be taken over by AI. It’s one of those rare career paths. It’s probably still going to be around for a while. All right, my extra credit this week is from The New York Times. It’s called “.” It’s by Arijeta Lajka, Isabelle Niu, Mark Boyer, James Surdam, and Dan T. Peters. It’s a video, and it shows how AI-generated doctors, Eastern medicine health practitioners, and wellness influencers are all over social media, making often dangerous health claims to sell all manner of questionable supplements. The money line from the piece, quote: “Ads like this would be illegal on U.S. television, but on the internet they face little enforcement.” Apparently, some of the big social media companies are trying to find and extinguish ads that make misleading claims or are not noted to be AI. But for now, it is still very much buyer and watcher beware.  

All right, that is this week’s show. Thanks to our editor, Emmarie Huetteman, and our producer-engineer, Francis Ying. We also had production help this week from Taylor Cook. A reminder: What the Health? is now available on WAMU platforms, the NPR app, and wherever you get your podcasts — as well as, of course, kffhealthnews.org. Also, as always, you can email us your comments or questions. We’re at whatthehealth@kff.org. Or you can still find me on X , and on Bluesky . Where do you guys hang these days? Margot. 

Sanger-Katz: I’m on social media , and you can reach me on Signal at sangerkatz.01. 

Rovner: Joanne. 

Kenen: I’m mostly on  and  @JoanneKenen. 

Rovner: Alice. 

Ollstein:  on X, and  on Bluesky. 

Rovner: We’ll be back in your feed next week. Until then, be healthy. 

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A Deloitte-Run System Denied Medicaid Benefits for Michigan’s Disabled. Now Trump’s Law Piles On. /health-industry/deloitte-medicaid-eligibility-system-denials-michigan-trump-policy-piles-on/ Tue, 21 Jul 2026 09:00:00 +0000 /?p=2258559 Marie Noon takes eight medications a day. One keeps her heart rate from spiking to avoid a stroke. One prevents debilitating headaches. Another ensures she doesn’t retain excess fluid.

More than a decade ago, Noon said, she was diagnosed with adult-onset Still’s disease, a rare type of inflammatory arthritis that can cause rashes, debilitating pain, and fevers. The disease upended her life.

She had been living a typical suburban life in Michigan, shuttling her two kids to activities like cheerleading, choir practice, and track. She was active in the PTA. She managed a bank.

She went from that to crawling to the bathroom because she was in so much pain, “just crying all day long” from being so sick.

Noon, who is disabled, said she couldn’t work for eight years — a time marked by hospital stays that stretched for weeks.

“I honestly thought I was going to die,” Noon said.

So it was a shock when Michigan denied her application for Medicaid benefits last year after she lost private insurance. Worse yet, it came down to an IT error, according to an attorney who helped Noon overturn the denial.

“I can’t afford my medical care. I have to have insurance,” said Noon, who has returned to working.

Deloitte, a multibillion-dollar global consulting firm, has operated Michigan’s Medicaid eligibility system under contracts worth roughly $768 million since 2006, according to contracts reviewed by Ñî¹óåú´«Ã½Ò•îl Health News. Nationwide, Deloitte dominates this important slice of government business: At least 25 states have awarded the company contracts to build or run computer systems that control access to safety net benefits such as Medicaid.

Michigan’s system has incorrectly directed people with disabilities into skimpier benefits that cover limited care or has denied coverage completely, a Ñî¹óåú´«Ã½Ò•îl Health News investigation found. Similar problems were at the center of a class-action suit in Tennessee, , and have occurred in Texas, according to interviews and state records.

The Ñî¹óåú´«Ã½Ò•îl Health News investigations are based on statements from state officials, allegations and declarations in court documents, emails obtained through public records requests, state government information provided to Medicaid enrollees and applicants, and interviews with attorneys and patients or their caregivers.

In an emailed statement, Deloitte spokesperson Karen Walsh said it found “no system anomalies causing routine denials of Medicaid for people with disabilities.”

“There are many reasons why someone may no longer be eligible for a benefit they once received or believe they deserve,” Walsh said. “All of the eligibility systems we support are owned by the states and built to their unique specifications. We will continue to work at the direction of our state clients.”

Lynn Sutfin, a spokesperson for Michigan’s Department of Health and Human Services, said it “is not aware of any widespread or systemic issues” within Bridges, Michigan’s eligibility system for Medicaid, SNAP, and other benefits, “related to disability‑based eligibility pathways.” 

Since 2006, Deloitte’s contracts with the state have said the company is responsible for development, implementation, maintenance, operations, and enhancements to the Michigan system.

Computer system problems foreshadow trouble as states prepare to roll out the most significant and complicated changes to their Medicaid programs in years. Those changes, dictated by President Donald Trump’s landmark One Big Beautiful Bill Act, have states rushing to update their Medicaid computer systems.

Nationwide, on Medicaid have a disability, according to KFF.

“When these administrative systems get overloaded, everyone gets impacted,” said Pamela Herd, a University of Michigan professor who researches bureaucratic obstacles to accessing government benefits. “The systems are going to be really, really strained.” 

In Michigan, Noon was eligible for Medicaid through a program that provides coverage to disabled adults who work. But the state’s computer system didn’t register that she is disabled and said she earned too much to qualify, according to documents reviewed by Ñî¹óåú´«Ã½Ò•îl Health News and interviews with Noon and Anastassia Kolosova, a disability rights attorney who helped her.

Without Medicaid coverage, Noon paid hundreds of dollars out-of-pocket for prescriptions, after scrounging for discount coupons. She takes some of the drugs twice a day.

Without them, “I’m toast,” she said. It was stressful “not knowing if my medicine’s going to be $50 or $500 this month, because it changes constantly.”

Noon said her doctor agreed to fewer visits to avoid medical bills.

“It was kind of a nightmare,” Noon said.

‘I Just Wanted To Give Up’

Medicaid, a safety net health program jointly run by the federal government and states, people with low incomes or disabilities. State governments rely on companies like Deloitte to design and operate computer systems that assess whether people qualify for Medicaid or food aid through the Supplemental Nutrition Assistance Program, commonly known as food stamps.

That technology has a history of errors that deprive eligible people of benefits, earlier Ñî¹óåú´«Ã½Ò•îl Health News investigations have shown. As reported previously, Kenneth Smith, a Deloitte executive who leads its national human services division, said Medicaid eligibility technology is state-owned and agencies “direct their operation” and “make decisions about the policies and processes that they implement.”

“They’re not Deloitte systems,” he said, noting Deloitte is one player among many who together administer Medicaid benefits.

States are under immense pressure to update their eligibility systems on a tight schedule to adhere to requirements in the Republicans’ sweeping 2025 tax and spending law. Companies including Deloitte, Accenture, and Optum are being paid millions in taxpayer funds to make the changes, which are projected to strip Medicaid from roughly 7.5 million people and SNAP from 2.4 million people by 2034.

Many coverage restrictions in the new federal law don’t apply to seniors, children, or people who are disabled, such as Noon. Nonetheless, the law’s demands on state agencies and the computer systems they oversee will disrupt benefits, advocates for Medicaid enrollees and other healthcare experts said in interviews.

The same systems also need to correctly classify why someone is eligible for Medicaid — and therefore which rules and restrictions apply.

The law’s SNAP restrictions began to take effect in 2025, and major Medicaid provisions begin later this year, generally after the midterm elections.

Kolosova is a supervising attorney with Disability Rights Michigan, a legal advocacy organization for people with disabilities. She said she has been unable to get a meeting with Michigan officials to understand the underlying problem that deprived Noon of health coverage.

A woman stands in a stairwell. She wears a shirt that says "Disability Rights Michigan"
Anastassia Kolosova, a supervising attorney with Disability Rights Michigan, helped Noon navigate the complicated process to obtain safety net health insurance through Medicaid. Kolosova says she has seen multiple wrongful coverage denials and fears problems will soon get worse because of changes required by federal law. (Kate Wells/Ñî¹óåú´«Ã½Ò•îl Health News)

State records show Deloitte has held contracts for at least 14 years for Bridges, Michigan’s eligibility system for Medicaid, SNAP, and other benefits. In its attempts to secure more business, the company often cites its nationwide footprint in Medicaid operations.

“Deloitte understands Bridges,” and its history in Michigan makes the company “the ideal vendor,” the firm said in its . Given Deloitte’s work on similar systems in 31 other states, , “Michigan benefits from our technical expertise drawn from across the nation.”

But advocates who work with people with disabilities say Michigan’s computer system has failed to recognize when certain adults should receive Medicaid benefits.

Problems aren’t unique to the Great Lakes State. Medicaid beneficiaries who brought a against Tennessee in 2020 said the state’s Deloitte-built system “does not reliably test for eligibility” for several categories of people with disabilities. The firm’s is worth $1.12 billion over a decade.

A federal judge in 2024 , ruling that Tennessee violated federal law and the U.S. Constitution. The lawsuit does not name Deloitte as a defendant.

In Michigan, a from the state’s Office of the Auditor General said government agencies “did not provide effective project administration” and failed to ensure that the state could “independently maintain and operate Bridges” because “the contractor did not transfer knowledge and skills” to state officials, according to the audit.

The auditor’s report said that, as a result, Deloitte’s original contract — valued at roughly $70 million — ballooned by $50 million over the initial cost, a 71% increase. State records show Michigan would go on to add millions more, bumping the cost of Deloitte’s initial contract to $124.1 million.

The audit said maintaining the contract would result “in significant additional costs.”

Sutfin said that “the state is now fully capable of operating and maintaining Bridges independently.”

Deloitte’s in Michigan — worth $197.4 million — is set to expire in 2030.

Noon applied for Medicaid in August, she and Kolosova said. In September, the Michigan Department of Health and Human Services sent a notice denying her coverage, citing incorrect income information and stating she wasn’t disabled, according to Kolosova and state documents reviewed by Ñî¹óåú´«Ã½Ò•îl Health News.

Noon said that when she called the state for help, state workers “didn’t know anything about” the Medicaid program she had applied to, Freedom to Work.

“I can’t tell you how many times I just wanted to give up,” she said.

For some people with disabilities, Medicaid is supposed to count only half their earnings when assessing whether they should receive benefits. That didn’t happen. Kolosova said she thinks Michigan’s eligibility system didn’t identify Noon as disabled, even though the state “already had all the information they needed” to show she was.

By failing to recognize her disability, the state used the wrong income formula and said Noon earned too much to qualify for Medicaid, she added. Deloitte and Michigan declined to respond to a detailed list of questions about Noon’s experience.

Kolosova said Disability Rights Michigan has seen a growing number of calls from people about Freedom to Work benefit denials. “Maybe two or three a month,” she said.

“There’s something wrong with the system if they’re relying on individual caseworkers to catch this,” Kolosova said. “The system needs to work.”

Marie Noon holds her dog as they stand by a window.
Noon at home with her dog, Ziggy. Despite being eligible for Medicaid, she was denied coverage in 2025 because of an error with the state’s benefits system. It took months of pushback before the state reversed its mistake. Even as a “tech-savvy” former bank manager, she says, she wanted to give up several times along the way. (Kate Wells/Ñî¹óåú´«Ã½Ò•îl Health News)

Enrolled in the Wrong Coverage

Noon’s experience isn’t the first time in recent years that people with disabilities have been denied benefits by Deloitte-run eligibility systems.

In Texas in 2023, Lilly Livingston, who has Down syndrome and is now 22, was abruptly cut off from Medicaid benefits, according to Livingston’s mother, Marie. She has undergone numerous surgeries to reconstruct her severely misaligned jaw, which caused sleep apnea and impaired her speech and chewing ability. She relied on an array of Medicaid services, including speech and occupational therapy.

When Livingston lost benefits, she was wrongly enrolled in Healthy Texas Women, a limited program that provides breast and cervical cancer screenings and family planning services.

“Trying to fix that was a nightmare,” Marie Livingston said.

Terry Anstee, an attorney with Disability Rights Texas, intervened.

In a September 2023 email with the subject line “URGENT,” Anstee begged a Texas Medicaid eligibility worker for help.

Some unknown “error” had occurred and stripped Livingston of her benefits, Anstee said in an email he sent to a state Medicaid staffer. “Lilly has had 2 major surgeries, and her recovery is contingent on Medicaid.”

It was clear that Livingston qualified for Medicaid through multiple paths, Anstee said: “It never made any sense.”

Deloitte declined to respond to a detailed list of questions about Livingston’s case. Jennifer Ruffcorn, a spokesperson for Texas Health and Human Services, confirmed that Livingston was erroneously enrolled in Healthy Texas Women. However, Ruffcorn said, Livingston did not experience a lapse in Medicaid coverage in 2023.

Anstee disputed the state’s characterization: “A glance in the system by a Texas HHS press officer or other staff 3 years after the fact may not tell the full story or show the issues that Ms. Livingston endured in August and September 2023. Ms. Livingston experienced lapses in coverage.”

The problem Livingston encountered in Texas was also reported in Michigan.

In 2024, mental health services advocates in Michigan raised red flags about a similar error: People with disabilities were being enrolled in a limited Medicaid program covering sexual health and family planning services. Plan First covers only services and treatment for sexually transmitted infections. It doesn’t provide the comprehensive coverage that people with disabilities require.

But some enrollees were “being automatically enrolled in Plan First,” Malcolm Kletke, a lobbyist representing the Community Mental Health Association of Michigan and other mental health providers, wrote to a Michigan health official, according to emails obtained by Ñî¹óåú´«Ã½Ò•îl Health News through a public records request.

These enrollees had “long received Medicaid due to their disability,” and getting enrolled in the wrong plan meant losing access to “services essential to their recovery and quality of life,” Kletke wrote in September 2024 to Amy Epkey, a senior deputy director of the Michigan Department of Health and Human Services.

In fact, the state’s own records show that Medicaid enrollment for those with disabilities did decline.

Over roughly four years, enrollment in the Medicaid category that includes people with disabilities , according to the Michigan House Fiscal Agency, which provides nonpartisan analysis to lawmakers. The drop was unusual given people generally leave the program because of death or having recovered from a temporary disability, and it’s unlikely those numbers would balloon, said Robert Sheehan, who was the mental health association’s CEO at the time.

Sutfin said the state examined the decline in enrollment and found “several contributing factors, including post‑covid renewal patterns, changes in beneficiary circumstances and movement to other coverage categories.”

After inquiries from Ñî¹óåú´«Ã½Ò•îl Health News, the Michigan health department acknowledged in April that it had made changes to “address concerns raised by advocates.”

Michigan’s computer system now prevents approval of Plan First benefits until all other coverage options are evaluated, Sutfin told Ñî¹óåú´«Ã½Ò•îl Health News. Sutfin said the changes were implemented but “not to correct system errors.”

Sutfin said the state submitted a change request to Deloitte to address this problem. The fix was implemented in January 2025.

Until presented with Kletke’s email, the state had denied there were problems related to Plan First.

Even after the state addressed that issue, other problems persisted.

Noon’s coverage denial notice arrived in September. She fought with the state for months to reverse its decision, “paying cash for all of the medicines through these appeals over and over and over again.”

It was only in January that she was approved.

“I literally cried,” Noon said. “It was a really big deal.”

Ñî¹óåú´«Ã½Ò•îl Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about .

This article first appeared on Ñî¹óåú´«Ã½Ò•îl Health News and is republished here under a .

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