Xerox Unit Faces Probe Over Texas Medicaid Braces Work

Law360, New York (September 4, 2012, 6:50 PM EDT) -- In the latest black mark for Texas Medicaid's scandal-plagued orthodontics program, state officials on Tuesday said they're investigating whether a Xerox Corp. unit, in its role as a claims administrator, approved dental braces that shouldn't have qualified for coverage.

The inquiry involves Xerox subsidiary Affiliated Computer Services Inc., the lead vendor on a claims processing contract that calls for prior authorizations before Medicaid beneficiaries can receive braces. Fraud has permeated the Lone Star State’s program, resulting in payments that in 2010 exceeded those in the rest...
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