Texas Sues Xerox for Spending Much Money on Dental Services

The results of a federal audit in association with increased financial losses in the sphere of Medicaid were published on Monday. It appeared that a lot of money was spent on a number of dental and orthodontic procedures with the help of a Texas state agency. This federal audit was conducted by U.S. Department of Health and Human Services and according to it, the Texas Health and Human Services Commission did not follow the practices of the company named Xerox Corp..

This company was chosen as a contractor for the process of the dental procedure pre-authorization and the director of this company did not take the responsibility to perform approval of the dental procedures in compliance with the state policies.

As a result of this mistake, all the financial obligations associated with the financial losses were automatically transferred onto the State Human Services Commission. Finally, the financial losses appeared to be really high as these procedures were executed in the wrong way for years. In return, Texas wants to return the financial loss and is suing the company for all the responsibilities that were not executed in the right manner. 10 years of cooperation between Texas and Xerox appeared to be really negative and Xerox played a role of the processor of all the claims that were associated with Medicaid.

Texas is blaming the company in high expenditures of the money that was designated for people that need dental care but now Texas cannot provide them with the proper care. The amount of the financial losses appeared to be really high and now makes up a sum of $1.1 billion lost. However, Texas cannot specify the sum of money that were used in the wrong way and can be treated as a financial loss. In return, the company of Xerox notes that the management of the company was following state guidelines in using the funds provided for Medicaid realization.

Photo by Jrahma [CC-BY-SA-3.0], undefined