Firm won $147.7M state contract after settling fraud suit

A company that in 2019 settled a $2 billion Medicaid fraud lawsuit with the state of Texas for $236 million was less than three years later awarded a contract similar to the one that had sparked the previous litigation, according to records on file with the Texas Health and Human Services Commission.

Conduent State Healthcare, a former Xerox subsidiary based in New Jersey, was selected by the commission in December for a $147.7 million contract to “provide both acute and long-term care fee-for-service claims-processing services” related to the state’s Medicaid program that provides health coverage for qualifying Texans who cannot afford private insurance.

The contract, awarded without a news release being issued by the state agency or the company, followed the February 2019 settlement of a lawsuit filed several years earlier by the Texas attorney general’s office that accused Conduent and Xerox, then its parent company, of approving billions of dollars for Medicaid-funded dental procedures that were deemed medically unnecessary.

Source: Firm won $147.7M state contract after settling fraud suit / Insurance NewsNet

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