States Are Spending Millions To Rewire Medicaid, SNAP Systems As Trump's New Law Could Push Millions Off Coverage: Report

State governments are spending millions on contractors such as Deloitte, Accenture, and Optum to comply with the One Big Beautiful Bill Act, which tightens eligibility for Medicaid and SNAP.

These companies operate systems that determine whether low-income Americans qualify for benefits. Costs are substantial: in Wisconsin, Deloitte estimates $6 million for Medicaid work requirement updates and $4.2 million for SNAP; Iowa expects $20.3 million via Accenture PLC (NYSE:ACN) , Vermont's Optum updates total $1.8 million. Most costs are federally funded, according to KFF Health News.

Federal Goals and Coverage Impact

The law introduces Medicaid work requirements, marking the first time Congress has required enrollees to work, volunteer, or study for 80 hours monthly unless exempt. The Congressional Budget Office projects 7.5 million people could lose Medicaid coverage by 2034.

SNAP restrictions may remove benefits from roughly 2.4 million recipients. Eligibility systems must track employment, exemptions, and documentation. Adaline Strumolo, Vermont's deputy health commissioner, described the changes as "a big, big lift."

Technology and Efficiency in Federal Health Policy

The law aligns with a broader federal push for digital modernization. CMS Administrator Dr. Mehmet Oz is advocating AI-driven tools and electronic claims processing to reduce administrative burdens and improve efficiency. A new CMS rule replaces faxed and paper claims with standardized electronic transactions, projected to save $782 million annually.

Pilot programs under the $50 billion Rural Health Transformation Program include digital avatars, remote monitoring, and robotic diagnostics to extend care in underserved areas. Dr. Oz stressed that these tools are intended to augment doctors' reach, not replace them, though broadband gaps and patient trust remain concerns.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock/ Phil Mistry