Judge Rules $400 Million Algorithmic System Illegally Denied Thousands of People’s Medicaid Benefits

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Judge Rules $400 Million Algorithmic System Illegally Denied Thousands of People’s Medicaid Benefits
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Thousands of children and adults were automatically terminated from Medicaid and disability benefits programs by a computer system that was supposed to make applying for and receiving health coverage easier.

© Deloitte has built automatic Medicaid eligibility determination systems for more than 20 states, including Tennessee. © NurPhoto/Getty Images

The decision was a result of a class action lawsuit filed in 2020 on behalf of 35 adults and children who were denied benefits. The TennCare Connect system, which launched in 2019, was the result of a years-long effort by the state to modernize its Medicaid system and adhere to new eligibility criteria and streamlined enrollment requirements mandated by the Affordable Care Act. Under the, states were supposed to provide a single application process that would collect residents’ information and determine which of the many complex health and disability benefits programs they were eligible for.

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