Texas Cancels Medicaid Contract, Sues Xerox Over Allegedly Misspent Money

Tolling Texans

Editor's Note: This story has been updated throughout to reflect the state's decision to cancel its contract with the Texas Medicaid and Healthcare Partnership, and the company's response to the state's actions.

As the Texas Attorney General's office on Friday announced it filed a lawsuit against state contractor Xerox, in an effort to reclaim hundreds of millions of dollars the company allegedly erroneously doled out for medically unnecessary Medicaid claims, the Health and Human Services Commission also notified the contractor that it plans to terminate its contract.

“Xerox’s unlawful acts resulted in a substantial ...

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