Democrats demand tougher standards for companies running Medicaid systems

October 20, 2026 / 5:00 AM EDT / KFF Health News

A group of Democratic senators is demanding that the federal agency overseeing Medicaid — the health coverage program for people with low incomes or disabilities — institute tougher standards for government contractors running complex computer systems that millions of people rely on to get benefits.

Three Democratic senators issued recommendations a year after launching an inquiry into companies — Deloitte, General Dynamics Information Technology, Gainwell Technologies, and Conduent — that are paid billions in taxpayer dollars to build or run eligibility systems for safety net health coverage. Those benefits, provided to the poorest Americans, can mean the difference between having medical care or going without.

A handful of states directly operate their Medicaid eligibility systems, but most rely on contractors to build and run them. KFF Health News found that Deloitte dominates this slice of government business. Deloitte-run systems have been plagued by errors that can result in eligible people losing their health coverage, previous KFF Health News investigations have shown. Malfunctions can cost millions of taxpayer dollars and take years to fix.

"Administrative errors in this line of work are not like errors in other fields," the senators…

Original source: https://www.cbsnews.com/healthwatch/