Wyden, Warren, Sanders, Warnock Probe Medicaid Contractors on Faulty Eligibility and Enrollment Systems
Republican Budget Bill Provides a Windfall to Firms That Create Medicaid Systems; Major Contractors
Washington, D.C. – Senate Finance Committee Ranking Member Ron Wyden, D-Ore., and Finance Committee Members Elizabeth Warren, D-Mass., Bernie Sanders, I-Vt., and Raphael G. Warnock, D-Ga., launched an inquiry into four of the largest contractors that build state Medicaid eligibility, enrollment, and information management systems across the country, as reports continue to emerge that these systems are plagued with errors, and the stakes are even higher now that the Republican budget bill mandates the creation of even more enrollment checks and verification systems for every state.
“We write out of concern that thousands of eligible Medicaid beneficiaries are erroneously denied coverage each year due to eligibility systems plagued by errors,” the members wrote. “H.R. 1 includes the largest cuts in Medicaid’s history and adds new red tape requirements by requiring states to condition Medicaid eligibility on individuals proving work. The addition of paperwork hurdles, layered onto problematic eligibility systems, will cause Americans to lose Medicaid coverage to this bureaucratic maze.”
The letter, sent to Conduent, Deloitte, General Dynamics Information Technology (GDIT) and Gainwell Technologies, asks the companies to detail their contracted payment structures, the documentation individuals are required to provide for Medicaid eligibility through their systems, any penalties that states may levy for wrongful terminations, their ability to update systems following the identification of errors, and more data and information related to the companies’ performance in administering these systems across the country.
The letter comes as the Republican budget bill creates new red tape requirements that every state must stand up before the end of next year to verify that enrollees engage in certain so-called “community engagement” activities, like employment, community service, a job search or training program, or education for 80 hours per month. Previous attempts by states to implement similar so-called “work requirement” programs have resulted in significant coverage losses, low enrollment, and had no impact on employment rates, at a significant cost to taxpayers.
Earlier this year, Wyden and Warren began investigating another contractor, Maximus, for similar practices.
The full letter is here.
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