When is a State Contract Too Big to Fail?

Tolling Texans


Part two of two.

For nearly five years, a state contractor allowed workers with limited expertise to approve dental claims for Texas’ Medicaid program, the joint state-federal insurer. State spending on orthodontic services spiraled out of control; by 2012, federal and state auditors found that the contractor’s actions had opened the door for a “massive Medicaid fraud scheme” that cost taxpayers hundreds of millions of dollars.

More than two years later, Texas health officials have reeled in spending on Medicaid orthodontic services and pursued legal action against health care providers who billed for the services. But a Texas Tribune ...

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