A federal lawsuit alleges that Florida’s Medicaid eligibility system, operated by Deloitte Consulting, has wrongfully terminated postpartum coverage for eligible mothers and infants, leaving some of the state’s most vulnerable residents without access to critical healthcare. The lawsuit underscores persistent issues with the system, which have reportedly impacted thousands of Floridians.
The Case of Mandi Rokx
Mandi Rokx, a new mother from Melrose, Florida, discovered in May 2023 that her Medicaid coverage—and that of her infant daughter Vernita—was slated for termination by May 31. This occurred despite a state law guaranteeing 12 months of continuous Medicaid coverage for postpartum mothers. Rokx asserts that she complied with all renewal requirements, yet she faced unexpected out-of-pocket medical expenses and relied on nonprofit health fairs for her daughter’s care.
Systemic Issues with Deloitte-Managed Systems
The lawsuit highlights critical flaws in Florida’s Medicaid eligibility system, developed and maintained by Deloitte Consulting. Court testimony revealed that a system defect improperly processed eligibility for postpartum mothers, leading to erroneous terminations.
Deloitte’s managing director for Florida’s Medicaid system, Harikumar Kallumkal, stated that the issue was identified and resolved by May 2024. However, plaintiffs like Rokx argue that problems persisted, continuing to jeopardize coverage for eligible individuals.
Similar issues have been reported in other states using Deloitte’s Medicaid systems. For example, a U.S. Government Accountability Office report noted that errors in Texas’ Deloitte-run system caused 100,000 eligible individuals to lose coverage.
Florida’s Medicaid “Unwinding” and Its Consequences
Florida’s Medicaid challenges worsened during the program’s “unwinding” process, which followed the expiration of pandemic-era coverage protections in March 2023. Nearly 2 million Floridians, including children, were disenrolled from Medicaid during this period.
State data indicates that 19,802 women lost pregnancy-related Medicaid coverage by March 2024. Advocates argue that the actual number could be higher, as these figures exclude terminations labeled as “paperwork issues.”
Advocates and Lawmakers Raise Concerns
Patient advocates, such as the Florida Health Justice Project, argue that the state failed to adequately inform individuals of their right to appeal Medicaid terminations. They also contend that state officials knowingly proceeded with the unwinding process despite being aware of system flaws.
Lynn Hearn, an attorney for the Florida Health Justice Project, stated, “Florida’s Medicaid officials knew from the start of the unwinding period that their system was not handling pregnancy and postpartum Medicaid correctly, and proceeded full steam ahead anyway. Mothers in this state deserve better from their government.”
Federal lawmakers have also criticized Deloitte and state governments for systemic issues. Rep. Lloyd Doggett (D-Texas) described the situation as an “alarming and unacceptable waste of taxpayer dollars,” while Sen. Ron Wyden (D-Ore.) highlighted the nationwide problem of “outdated and inaccurate eligibility systems.”
Deloitte’s Role and the Lawsuit’s Implications
Although Deloitte is not named as a defendant in the class-action lawsuit, the firm’s role in designing and managing Florida’s Medicaid eligibility system has come under intense scrutiny. Deloitte, a leading contractor for Medicaid systems nationwide, has faced repeated criticism for systemic failures that disrupt access to healthcare for eligible individuals.
For families like Rokx’s, the outcome of the lawsuit could compel the state to address these systemic flaws and ensure that eligible residents retain their coverage. As the trial progresses, patient advocates remain committed to seeking accountability and advocating for comprehensive reforms to Florida’s Medicaid system.
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