# Private contractors profit as Medicaid cuts hit millions

> Medicaid work requirements could strip coverage from 7.5 million Americans by 2034, report says.
- Title: Private contractors profit as Medicaid cuts hit millions
- Summary: Medicaid work requirements could strip coverage from 7.5 million Americans by 2034, report says. New Medicaid work rules may cause 7.5 million Americans to…
- Keywords: medicaid work requirements, maximus, gainwell, deloitte, conduent, general dynamics, senate finance committee, medicaid cuts, healthcare access, contractors, state governments, federal budget
- Source: Mother Jones — https://motherjones.com/politics/2026/10/contractors-profit-obbb-bill-medicaid-cuts-work-requirements-deloitte-gainwell
- Author: Sophie Hurwitz
- Published: 2026-10-20T19:13:45+00:00
- Read time: 1 min
- Topics: medicaid work requirements, maximus, gainwell, deloitte, conduent, general dynamics, senate finance committee, medicaid cuts, healthcare access, contractors, state governments, federal budget
## New Medicaid work rules
On January 1, new Medicaid work requirements will kick in nationwide, causing millions to lose healthcare access.
## Contractors get contracts
States pay third-party contractors millions to design and operate systems for Medicaid eligibility under new rules.
## Senate report names companies
Senate Finance Committee report identifies Maximus, Gainwell, General Dynamics, Conduent, and Deloitte as contractors for Medicaid work requirements.
## Work requirements details
Able-bodied recipients under 64 must prove 80 hours monthly of work or activities to avoid losing coverage.
## Georgia case study
Georgia enrolled only 7 percent of eligible adults in Medicaid after implementing work requirements in 2023.
## Georgia costs
Georgia’s Medicaid program cost $54 million in administrative fees, double the $26 million spent on actual insurance coverage.
## Arkansas and Michigan failures
Arkansas lost 17,000 coverage in four months in 2018 due to internet access issues; Michigan paused plans after projecting 80,000 losses.
## Gainwell's issues
Gainwell faced $52.2 million billing failures in New York State, with Medicaid covering the costs.
## Senate warning
Senators warn contractors may lose coverage due to system failures, not eligibility issues.
## Key takeaway

New Medicaid work rules may cause 7.5 million Americans to lose healthcare by 2034 due to verification failures.