Xerox Responds to Texas AG’s Lawsuit Alleging Fraudulent Medicaid Dental Claims

Xerox has responded to a suit filed by the Texas Attorney General’s office regarding Xerox’s performance as a state contractor administering the state’s Medicaid orthodontic program. The state’s Health and Human Services Commission (HHSC) has also decided to replace Xerox as Medicaid provider.

The Texas Attorney General’s office filed the suit against Xerox on May 9th, and is seeking to reclaim hundreds of millions of dollars the company allegedly erroneously doled out for alleged medically unnecessary Medicaid claims.

“Xerox’s unlawful acts resulted in a substantial breach of safeguards intended to protect taxpayer dollars, maintain the integrity of Medicaid policies, and ensure the appropriate delivery of services to Medicaid clients,” the state’s legal complaint alleges. “Xerox permitted an unprecedented loss of Medicaid funds to predatory and unscrupulous dental providers. As a result of the conduct of both Xerox and these providers, the Medicaid program was deeply compromised.”

The lawsuit was filed in Travis County district court in Texas, and the state has asked for a jury trial.

In response, Xerox issued a press release on May 9th, stating that “the lawsuit filed today by the Texas Attorney General’s office regarding Xerox’s performance administering the state’s Medicaid orthodontic program is misdirected. Xerox will defend itself vigorously.”

Xerox contends that “it has always been and continues to be our objective to reach a resolution with HHSC and the state on their concerns, and hopefully we can find a path forward to attain a reasonable result to address our differences. While we’re disappointed in this development, Xerox will continue to serve disadvantaged and under-served Medicaid beneficiaries in Texas during the transition.”

The Medicaid orthodontia program provides disadvantaged children with access to critical orthodontia procedures. Xerox says the fault lies with dentists who took advantage of the program, not with Xerox, stating: “We have never engaged in fraudulent activity and always operated with complete transparency.”

Xerox’s press release also states:

“Xerox, under its Texas Medicaid & Healthcare Partnership (TMHP), has always performed its work in good faith. Moreover, the entire program Xerox implemented was designed by HHSC. Xerox received HHSC approval on each of its processes and Xerox also provided monthly reports to HHSC from the beginning of the program and continues to do so today.

Xerox has always collaborated with HHSC to ensure the integrity of the state’s Medicaid system since the contract was first awarded in 2003, then re-awarded in 2010 and extended in 2012.

While we are certainly disappointed HHSC has filed suit, we’re committed to a smooth transition of responsibilities to ensure no disruption of services to Medicaid beneficiaries and the providers who care for them.”

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