Former Xerox Subsidiary Owes Texas $236M Over Medicaid Claims (Corrected)

Companies once owned by Xerox Corp. will pay nearly $236 million to resolve allegations they failed to properly evaluate payment claims for Medicaid-funded dental procedures.

Texas Attorney General Ken Paxton said Feb. 19 the company—now called Conduent Business Services—will pay the state the record-setting figure to settle the state’s case against it. As part of the settlement, the company does not admit any wrongdoing.

Conduent, based in Florham Park, N.J., will pay the penalty to resolve allegations it did little more than “rubber-stamp” orthodontic prior authorization requests without ensuring the services billed by practitioners were medically necessary. This enabled ...