Texas’ civil Medicaid fraud unit is deteriorating under Ken Paxton

Nearly two-thirds of the lawyers for Texas’ Civil Medicaid Fraud Division have resigned under Attorney General Ken Paxton. This is raising concerns that the elite unit will be ill-equipped to investigate, prosecute, and recover funds from fraud and abuse in the Medicaid system. The division has been successful in recovering $2.6 billion, with $1 billion going into the state’s general fund. However, since Paxton took office, the team of lawyers has dwindled, with 19 attorneys currently, down from 31 last year. The division experienced a significant leadership change when Raymond Winter, the longtime division chief, was forced out and replaced by a more junior leader. Several attorneys have expressed concern that the loss of experienced attorneys and poor internal agency functioning has put the state agency at a crisis point. With Paxton himself facing legal scrutiny and internal turmoil in his office, the resignation of experienced attorneys has raised concerns about future Medicaid fraud investigations and financial settlements. The division opened only 56 cases last fiscal year, the lowest number since at least 2013. The loss of experienced lawyers is expected to impact the division’s ability to secure financial settlements for subsequent years. It is too soon to know how the division’s ability to secure financial settlements will be affected by the loss of so many experienced attorneys. Despite the ongoing challenges, Paxton has remained emboldened, pledging to help unseat lawmakers who voted to impeach him and has supported numerous primary challengers to sitting Republican legislators. Whether the Civil Medicaid Fraud Division can regain its former stature with these challenges remains unclear.

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