March 28, 2025 – Texas Medicaid Insurer: Texas Attorney General Ken Paxton has launched an investigation into Superior HealthPlan, a Medicaid insurance provider, after allegations surfaced that the company illegally spied on lawmakers, journalists, and private citizens.
Allegations of Blackmail and Surveillance
Superior HealthPlan, which offers Medicaid and Children’s Health Insurance Program (CHIP) coverage in Texas, allegedly used private investigators to perform surveillance and gather confidential information. The targets included lawmakers and other influential Texans. Paxton expressed concern that the company’s actions aimed to blackmail lawmakers to secure state contracts and avoid paying legitimate claims. Texas Medicaid Insurer
CEO Questioned, Then Fired
On Wednesday, Superior HealthPlan CEO Mark Sanders testified before the Texas House Committee on the Delivery of Government Efficiency. He admitted that the company had used private investigators but claimed they had stopped the practice years ago. However, after intense scrutiny from lawmakers, Sanders was fired on Thursday, according to the Dallas Morning News.
Lawmakers Condemn Superior’s Actions
Lawmakers expressed outrage over the company’s conduct. State Rep. Tony Tinderholt (R-Arlington) called the practice “disgusting.” Similarly, Rep. David Cook (R-Mansfield) questioned why Superior HealthPlan investigators had looked into legislators’ divorce records. Sanders failed to provide a clear explanation.
“We’re talking to a company that received billions in taxpayer funds through Medicaid contracts,” said Rep. Ellen Troxclair (R-Lakeway). “That money was used to hire private investigators to follow patients and legislators. It’s ridiculous.”
Bill Filed to Prohibit Surveillance by State Contractors
In response, state Rep. Jeff Leach filed House Bill 5061 earlier this month. The bill seeks to prohibit any state contractor from engaging in surveillance, aiming to prevent similar incidents in the future.
Impact on Texans’ Medicaid Coverage
Tiffany Young, a spokesperson for Texas Health and Human Services, referred questions about the investigation’s impact on Medicaid coverage to Paxton’s office. However, the attorney general’s office has yet to respond to inquiries.
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🔗 Source: The Texas Tribune – Full Article
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