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Texas officials accuse Xerox of health care fraud

The state of Texas recently accused Xerox, the giant in the copying industry, of violating its Medicaid Fraud Prevention Act. The law makes it illegal to fraudulent charge the state’s Medicaid system.

More on the Texas Medicaid Fraud Prevention Act: The state’s law makes it illegal to make a false statement, misrepresent a material fact or conceal information in order to receive coverage under the Medicaid program.

The state will hold any individual or business found in violation of this law accountable for any the cost of any fees as well as potential injunctive relief or civil remedies as deemed appropriate by the court. Civil remedies can include the amount of the payment, interest and an additional civil penalty. The civil penalty will vary depending on the seriousness of the violation, whether the health or safety of an individual or the general public was impacted by the alleged violation, the amount the court deems necessary to deter future acts and whether the accused has a history of violations.

The law also calls on licensing authorities like the Texas Medical Board and State Board of Dental Examiners, to revoke the license of anyone who is convicted of a felony under this law.

More on the charges: According to the allegations, Xerox fraudulently requested payment for dental work. It appears the state went after the corporation, not the dental practitioner.

Prosecutors accused the company of improperly approving certain orthodontic requests for Medicaid coverage. As a result, state officials claim thousands of children received coverage for either unnecessary or unneeded orthodontic treatments. Instead of fighting the charges, Xerox agreed to settle the claims, playing the state $239.5 million in retribution.

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