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A federal audit has found a Texas state agency to blame in an ongoing fight with Xerox Corp. over who is responsible for hundreds of millions of Medicaid dollars potentially misspent on unnecessary dental and orthodontic procedures.

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The Austin American Statesman reports the U.S. Department of Health and Human Services’ Office of Inspector General audit was released Monday.

Screen Shot 2013-10-04 at 9.47.03 AMThe report indicates the Texas Health and Human Services Commission for years didn’t address the practices of Xerox, the contractor it hired to pre-authorize the dental procedures. The audit states the contractor’s dental director did not follow state policies in approving the procedures, but that responsibilities for any losses ultimately fell on the state human services commission.

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