State probes Xerox Corp. in Medicaid fraud investigation - KYTX CBS 19 Tyler Longview News Weather Sports

Courtesy Reuters news agency

AUSTIN (KYTX) - Xerox Corp. and one of its wholly owned subsidiaries that contracted with the state of Texas to process dental claim forms are being investigated by state authorities to see if they played any role in allowing dentists to submit higher-than-required bills under the state's Medicaid system, the Wall Street Journal reported.

Affiliated Computer Services Inc, fully owned by Xerox, did not dedicate sufficient trained staff to audit the Medicaid requests, letting dentists get paid for procedures not covered by the program, according to the Texas Health and Human Services Commission, the WSJ said.

The current scrutiny of Xerox is part of a wider state investigation into Medicaid abuse that has largely targeted dentists and orthodontists, who have been accused by state officials of improperly billing the state for unnecessary procedures.

Xerox said it helps administer Medicaid programs in 36 U.S. states and the District of Columbia and processes $54 billion in annual Medicaid spending, the Journal reported.