Home Courts Xerox pays $235.9M to settle Medicaid fraud case

Xerox pays $235.9M to settle Medicaid fraud case

Xerox Corp. and several of its former subsidiaries has agreed to pay $239.5 million to the state of Texas in settling a lawsuit charging the Norwalk-headquartered company with violating the Texas Medicaid Fraud Prevention Act through fraudulent Medicaid payments made while the company was responsible for pre-authorizations for Texas Medicaid patients’ dental work.

Xerox Texas
Paxton

The state of Texas launched a formal investigation into the matter in April 2012 and filed its initial lawsuit in May 2014, charging Xerox, its then-subsidiaries Conduent and Texas Medicaid and Healthcare Partnership, with improperly approving orthodontic prior-authorization requests for Medicaid coverage. The actions resulted in taxpayer-funded orthodontic work performed on thousands of children who either didn’t meet the Medicaid standard for braces or didn’t require treatment.
Last June, the Texas Supreme Court found Xerox responsible for $1 billion in fraudulent Medicaid payments made while the company was responsible for pre-authorizations for Texas Medicaid patients’ dental work.

Xerox did not publicly comment on the settlement. Texas Attorney General Ken Paxton said the settlement represents the largest single resolution in a case filed by the state for Medicaid-related claims.

“Misconduct by employees of Xerox and its related companies compromised the integrity of the Medicaid program – the very program Texas hired the Xerox defendants to safeguard through the administration of a proper prior authorization review,” Paxton said. “We’re proud of this recovery of taxpayer money. My office is committed to ensuring that Medicaid dollars are preserved for those who need it most.”

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Phil Hall's writing for Westfair Communications has earned multiple awards from the Connecticut Press Club and the Connecticut Society of Professional Journalists. He is a former United Nations-based reporter for Fairchild Broadcast News and the author of 10 books (including the 2020 release "Moby Dick: The Radio Play" and the upcoming "Jesus Christ Movie Star," both published by BearManor Media). He is also the host of the SoundCloud podcast "The Online Movie Show," co-host of the WAPJ-FM talk show "Nutmeg Chatter" and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill's Congress Blog, Profit Confidential, The MReport and StockNews.com. Outside of journalism, he is also a horror movie actor - usually playing the creepy villain who gets badly killed at the end of each film.

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