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Judge rules $400M algorithmic system illegally denied Medicaid benefits
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.
Thousands of Tennesseans were illegally denied Medicaid and other benefits due to programming and data errors in an algorithmic system the state uses to determine eligibility for low-income residents and people with disabilities, a U.S. District Court judge ruled this week. But in practice, the system often doesn’t load the appropriate data, assigns beneficiaries to the wrong households, and makes incorrect eligibility determinations, according to the decision from Middle District of Tennessee Judge Waverly Crenshaw Jr. Advocacy groups have asked the Federal Trade Commission to investigate Deloitte’s practices in Texas, where they say thousands of residents are similarly being inappropriately denied life-saving benefits by the company’s faulty systems.
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