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The Texas Attorney General’s office filed a lawsuit against state contractor Xerox Corporation (XRX – Analyst Report), looking to recover hundreds of millions of dollars that the company allegedly squandered away for unnecessary Medicaid claims.
In addition, the state’s Medicaid agency, the Health and Human Services Commission (HHSC), has decided to prematurely abort Xerox’s five-year claims administration contract reportedly worth about $759 million.The Lawsuit
The lawsuit charges Xerox of showing incompetency in performing medical reviews required by the contract, jeopardizing taxpayers’ funds. Xerox has allegedly allowed corrupt dentists to provide expensive treatment for thousands of poor children who did not meet the government’s stringent criteria for the costly dental work.