New Medicaid Law Forces States to Cut Benefits for Millions by 2034

A new law called the One Big Beautiful Bill Act is forcing every US state to update its Medicaid systems. The changes will introduce work requirements for those receiving benefits. No state has been left untouched by the policy shift.

Millions of Americans now face losing access to healthcare and food aid as a result. The law's Medicaid policies are expected to leave 7.5 million people uninsured by 2034. Another 2.4 million will lose monthly cash assistance for food. States must now adjust their computer systems to enforce the new rules.

These systems, which determine eligibility for Medicaid and food aid, have a history of errors. Mistakes in the past have wrongly cut off benefits for eligible people. Now, states are hiring contractors to help them comply with the law.

In Wisconsin, Deloitte estimates that updating the system will cost nearly $6 million. Vermont's changes, handled by Optum, are projected to reach $1.8 million. Across five states, the combined cost of these updates is at least $45.6 million.

The law strips away safety-net benefits for millions. States have no choice but to implement the changes, regardless of the financial burden or risks to vulnerable residents. The One Big Beautiful Bill Act is pushing states to spend millions on system updates. By 2034, 7.5 million people will lose health coverage, and 2.4 million will no longer receive food assistance. The changes are now underway, with no state exempt from the new requirements.