Texas AG Settles for $40 Million Over Medicaid Fraud Allegations

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  • Texas AG Ken Paxon announced a settlement with Molina Healthcare of Texas, Inc. and Molina Healthcare, Inc. (collectively, “Molina”), to resolve allegations of Medicaid fraud.
  • The AG’s office claims Molina violated the Texas Health Care Program Fraud Prevention Act (THFPA) by failing to timely assess Medicaid beneficiaries for required services and concealing its non-compliance from the state.
  • According to the AG’s office, the settlement stems from a whistleblower lawsuit filed under the qui tam provisions of the THFPA, which allows individuals to report fraud against the state and receive a portion of any financial recovery.
  • As part of the agreement, Molina will pay $40 million to settle the claims.
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