AIG Can't Escape $236M Texas Medicaid Fraud Settlement

By Sarah Jarvis (July 25, 2019, 9:17 PM EDT) -- AIG may still be on the hook for a nearly $236 million settlement that a company it insures reached with the state of Texas earlier this year over Medicaid fraud claims, after a Delaware state judge denied the insurer's motion for reargument Thursday.

AIG Specialty Insurance Co. and AIG member Lexington Insurance Co. had hoped to reargue a motion to dismiss claims related to a 2012 notification from the Texas attorney general's office known as a civil investigative demand. The CID had alerted Conduent State Healthcare LLC, the claims administrator for Texas Medicaid's orthodontics program, that the state was investigating possible Medicaid fraud....

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