Records obtained by American Oversight show outside medical providers have gone unpaid since October, raising concerns about detainees’ access to lifesaving care.
By Krystal Knapp, The Jersey Vindicator, August 10, 2026
A breakdown in the federal government’s medical payment system has left outside providers unpaid for treating immigration detainees since October, raising concerns about access to necessary care, according to a Los Angeles Times investigation.
For years, a Department of Veterans Affairs unit processed medical claims for U.S. Immigration and Customs Enforcement and Customs and Border Protection. The VA ended that work Oct. 3, earlier than initially planned, but the private contractors hired to replace it have not begun reimbursing hospitals, clinics, dentists, and pharmacies. ICE has instructed providers to hold their claims while the new system is set up.
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Federal records show that ICE itself warned that unpaid providers could stop accepting detainees, delaying dialysis, chemotherapy, prenatal care, and other potentially lifesaving treatment. The agency originally expected claims processing to resume by April 30, but the replacement system was still not operating in early August.