The following appears on trmr.org

Gov. Abbott’s Health and Human Services Commission Strike Force, besides reviewing the Medicaid fraud software contract with 21CT and Jack Stick, looked at the Health and Human Services Commission dealings with Xerox and its contract dealing with the company’s handling of Medicaid orthodontic prior authorization.

The Strike Force report highlights the following facts:

  • HHSC knew in 2008 that Xerox’s prior authorization process for Medicaid orthodontia was broken yet it did nothing to remedy the situation.
  • Xerox’s contract as Medicaid claims administrator was going to end in the summer of 2014 and HHSC had made no provisions to rebid the contract.  Preparations for bidding such a large contact takes three years.
  • When HHSC cut Xerox lose in May of 2014 and the state sued the company, HHSC was totally unprepared.  When they gave Accenture a three-year extension as the claims administrator, it was the largest no-bid contract given in recent Texas history and violated state law as they did not notify the Comptroller’s Office.
  • The Strike Force discovered Xerox is still working in Texas Medicaid today under Accenture, running its pharmacy benefits program.

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