Two Democratic senators, Elizabeth Warren and Ron Wyden, have raised concerns about the potential for a company, Maximus, Inc., to profit from Republican-led cuts to Medicaid, a public health insurance program for low-income, elderly, and disabled individuals. Maximus is the largest private contractor assisting states in outsourcing government assistance administration, including health insurance and food aid. The senators criticized Maximus for a track record of removing Americans from Medicaid to boost profits, warning of potential harm if Republicans pass proposed legislation.

Maximus, a publicly traded company with a market capitalization of $3.9 billion, plays a significant role in privatizing administrative functions for programs serving vulnerable populations. Warren and Wyden highlighted reports of service delays, fraud, and backlogs associated with Maximus. The company’s responsibilities include determining eligibility for programs like Medicaid, food stamps (SNAP), and welfare (TANF) in states where it operates.

The senators’ letter comes as Republicans aim to introduce more bureaucracy, such as work requirements, to Medicaid. These requirements could lead to millions losing insurance due to increased administrative burdens. Maximus has been lobbying the government and aligning its objectives with cost-cutting initiatives. The senators also noted a spike in Maximus’s stock price during states’ post-pandemic Medicaid reassessment processes, raising concerns about financial motives.

Republicans’ Medicaid cut strategy includes mandating additional paperwork and documentation, potentially jeopardizing coverage for many beneficiaries. Warren and Wyden criticized the proposed funding allocation for new programs as insufficient, emphasizing the substantial financial requirements states would face to implement these changes effectively.