May 9, 2014 3:53 PM

Texas is firing and suing Xerox over Medicaid claims

Nelson says any entity that takes on the role must be closely monitored

Texas is suing Xerox amid allegations the company misspent hundreds of millions in requests for dental and orthodontic services through Medicaid. Meantime, the Health and Human Services Commission has told the company it's being fired. Xerox's contract will be terminated, the agency said.

Senate Health and Human Services Chair Jane Nelson, R-Flower Mound, said the agency was right to take swift action and “absolutely made the right call to hold this contractor accountable and recover these taxpayer dollars.” She added "we entrusted the contractor to be responsible stewards of our taxpayer dollars. That trust has been broken, and we want our money back. Moving forward we must closely monitor whatever entity assumes this important role."

The Office of the Attorney General released a statement saying the state will try to recover the cost of the services approved by Xerox. The company has been responsible for reviewing dental and orthodontic claims in Medicaid here.