Capitol Correspondence - 02.06.24

Complaint Lodged with FTC Alleges Deloitte’s Faulty Medicaid Software Jeopardizes Health Care Access in Texas

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In a joint effort, the National Health Law Program (NHeLP), the Electronic Privacy Information Center (EPIC), and Upturn have filed a formal complaint with the Federal Trade Commission (FTC), urging an investigation into Deloitte’s alleged unfair and deceptive practices concerning its Medicaid eligibility software in Texas.

The complaint, submitted on January 31, raises concerns about inaccurate and unreliable Medicaid eligibility determinations resulting from the use of Deloitte’s automated software, the Texas Integrated Eligibility Redesign System (TIERS). This system is crucial for hundreds of thousands of people in Texas who depend on Medicaid for health care coverage.

Deloitte, providing Medicaid eligibility software to at least 20 states, including Texas, has faced previous accusations of similar errors across the country for the past decade.

The timing of these issues is critical, coinciding with the nationwide Medicaid “unwinding” process, where a significant number of people undergo redeterminations following the end of the COVID-19 Public Health Emergency. Despite the pause in redeterminations from 2020 to 2023, the complaint calls for an FTC investigation into Deloitte’s business practices, a temporary halt to TIERS usage, public disclosure of how TIERS is programmed, and the implementation of a comprehensive risk mitigation strategy to prevent Texans from losing health care coverage.

Sarah Grusin, Senior Attorney with the National Health Law Program, emphasized the impact on vulnerable populations, stating, “These flaws lead to people who are eligible for Medicaid losing coverage because of design and programming errors made by Deloitte.”