Texas Attorney General Ken Paxton has announced an investigation into Superior HealthPlan, a Medicaid insurance provider in the state. The investigation follows serious allegations that the company engaged in illegal surveillance of Texans, including lawmakers and journalists.
Superior HealthPlan, which provides Medicaid and Children’s Health Insurance Program coverage, is accused of hiring private investigators to gather confidential information. Paxton described the allegations as "deeply troubling," particularly those suggesting that the company may have attempted to manipulate lawmakers and discredit legitimate insurance claims to protect its financial interests.
The scrutiny intensified during a recent hearing of the Texas House Committee on the Delivery of Government Efficiency. During this session, Superior HealthPlan’s CEO, Mark Sanders, faced questions about the company’s use of private investigators. He admitted that the company had used these investigators in the past but claimed they had not done so in recent years. However, lawmakers expressed skepticism about the motives behind this surveillance, suspecting it was a tactic to gain leverage for future state contracts.
In a dramatic turn, Sanders was fired the day after the hearing. He defended the company’s actions by saying that the information gathered was merely public knowledge, aimed at better understanding stakeholders. However, lawmakers were not convinced. They raised concerns about the company’s tactics and their implications for transparency and accountability, especially given the significant taxpayer funds involved in Medicaid contracts.
State Representative David Cook pointedly questioned Sanders about why investigators looked into legislators’ divorce records if there was no intent to gain leverage. Sanders’s vague response only fueled further distrust among lawmakers.
In response to the growing concerns, state Rep. Jeff Leach has filed House Bill 5061, which seeks to prohibit contractors working with the state from engaging in surveillance activities. Lawmakers expressed outrage over the idea that taxpayer money was used to fund such questionable practices.
Tiffany Young, a spokesperson for Texas Health and Human Services, directed inquiries about how this investigation might impact Medicaid coverage to Paxton’s office, which had not yet provided a comment.
As the investigation unfolds, it raises important questions about the ethics of Medicaid providers and the protection of citizens’ privacy in Texas.