PAXTON SUES DENTAL PROVIDERS, MARKETERS OVER ALLEGED MEDICAID FRAUD SCHEME
MARCH 31, 2026 – AUSTIN — Texas Attorney General Ken Paxton has filed a lawsuit against multiple dental providers and marketing groups accused of orchestrating a scheme to defraud Texas Medicaid by performing medically unnecessary procedures on patients.
According to the lawsuit, the providers allegedly partnered with so-called “marketer defendants” who targeted Medicaid recipients—often low-income families—by offering incentives such as gift cards to become patients. Those marketers then directed individuals through a network of clinics, sometimes moving them between locations to increase billing opportunities.
Once patients were recruited, the providers are accused of performing unnecessary dental procedures, including some considered high-risk, and billing Medicaid for services that were not medically justified. State officials say the alleged scheme not only wasted taxpayer dollars but also placed vulnerable patients, including children, at risk.
The case is being brought under the Texas Health Care Program Fraud Prevention Act, which prohibits false claims, kickbacks and other fraudulent practices involving Medicaid services. The Attorney General’s office is seeking restitution, civil penalties and additional remedies.
“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.
Medicaid fraud has been an ongoing concern in Texas, particularly in the healthcare sector, where past enforcement actions have targeted billing schemes, unlawful referrals and unnecessary treatments. The state has increased oversight in recent years through its Healthcare Program Enforcement Division, which works to identify and prosecute fraud involving public funds.
The lawsuit was initially filed under seal but has since been unsealed, allowing more details to become public. Officials say the case underscores continued efforts to protect both taxpayer resources and patient safety across Texas.
