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2.0

Reported: Veterans Affairs ends contract with ICE for processing detainee health services claims

  1. Original Date Announced

    October 3, 2025

    Popular Information reports that the Department of Veterans Affairs (VA) abruptly ended its contract with ICE for processing ICE detainees' health services claims. For more than two decades, ICE paid the VA to handle reimbursement claims for ICE detainees who needed medical care outside detention facilities, such as medications, dialysis, prenatal care, and cancer treatment. The termination of the contract left ICE with no system to pay for or provide prescribed medication or off-site treatment.

    ICE has sought no-bid contracts to replace the services the VA had previously processed, stating that immediate awards were needed to restore claims processing and benefits services to avoid delays in critical or life-saving care and prevent provider network deterioration caused by unpaid claims. ICE signed two contracts to replace the VA's role on October 25; however, those systems are still not functioning. Popular Information states that it is unclear how or if ICE detainees are receiving medication or obtaining outside medical care in the interim.

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  2. Effective Date

    October 3, 2025
  3. Subsequent Trump and Court Action

    October 17, 2025

    2025.10.17 ICE - Medical Claims Processing Firm Fixed Price Letter

    ICE has awarded Acentra Health, LLC with a firm-fixed price letter contract to serve as a third-party administrator responsible for claims processing and payment services.

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  4. Subsequent Trump and Court Action

    October 22, 2025

    2025.10.22 ICE - Pharmacy Benefit Manager (PBM) Firm Fixed Price Letter

    ICE has awarded Ardent Group, LLC, with a firm-fixed price letter contract to provide pharmaceutical benefit manager services.

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  5. Subsequent Trump and Court Action

    November 12, 2025

    2025.11.12 IHSC - New Claims Processing Notification

    The ICE Health Service Corps website indicates that their new systems for processing service claims are not yet operational and cannot currently process claims. Providers are instructed to "hold all claim submissions while we work to bring the new systems online."

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