Attorney General Ken Paxton has sued a group of dental providers and marketers, accusing them of bribing Medicaid patients with gift cards and performing medically unnecessary procedures to defraud Texas Medicaid.
The lawsuit claims the providers paid the marketers to target Medicaid beneficiaries and their families, offering gift cards in exchange for scheduling appointments. The marketers then directed patients to the providers’ clinics and frequently moved them between locations in the network to increase Medicaid reimbursements, according to the suit.
Once patients were secured, the providers allegedly performed unnecessary, sometimes high-risk, dental procedures that were not medically justified, billing the state program for the services. The actions defrauded taxpayers and exposed vulnerable Texans, including children, to unneeded treatments and risks, Paxton’s office said.
The lawsuit alleges that the “scheme continued for years and resulted in tens of thousands of fraudulent Medicaid claims.”
Paxton filed the case under the Texas Health Care Program Fraud Prevention Act, which bars false claims, concealment of material information, and unlawful kickback arrangements involving Medicaid-funded services. The state is seeking full restitution, civil penalties, and all other available remedies to recover taxpayer money and hold the defendants accountable.
“It is malicious and unacceptable that these providers were performing dangerous, medically unnecessary procedures on patients in order to scam our Medicaid system,” Paxton said. “Our Medicaid resources are in place to serve Texans in need, and my office will continue to fight fraud and abuse within that system.”
The attorney general’s Healthcare Program Enforcement Division said it remains committed to upholding the law, protecting the health of Texans, and holding accountable those who abuse state and federal resources.
The complaint, originally filed in August of 2025, was sealed, but it has now been unsealed and is available to view here.
