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Texas’ Civil Medicaid Fraud Division Faces Unprecedented Exodus Under Paxton

Texas Attorney General Ken Paxton (R) Screenshot_YouTube

The Civil Medicaid Fraud Division of Texas, once heralded for its rigorous pursuit of justice against pharmaceutical giants and for recovering billions for the state, is now experiencing an unparalleled crisis under Attorney General Ken Paxton. The Texas Tribune, in collaboration with ProPublica, reports that the division has seen a staggering exodus of nearly two-thirds of its attorneys since Paxton’s tenure, marking the unit’s lowest staffing levels since his inauguration. This mass departure, initiated by the forced exit of the division’s respected chief, Raymond Winter, in late 2022, poses significant threats to the state’s ability to combat Medicaid fraud effectively.

Under Winter’s leadership, the division achieved remarkable success, securing over $2.6 billion in recoveries from fraudulent practices within the Medicaid system, of which $1 billion enriched the state’s general revenue. These accomplishments not only underscored the division’s critical role in safeguarding taxpayer dollars but also enhanced the reputation of the Attorney General’s office. However, the recent turmoil has left the division depleted, with only 19 attorneys remaining from an original team of 31, significantly diminishing its operational capacity.

The series of resignations that followed Winter’s controversial departure reflects deeper issues within Paxton’s administration, including allegations of corruption and operational dysfunction. This upheaval within the Civil Medicaid Fraud Division is not isolated; it echoes broader challenges facing Paxton’s office, from the handling of human trafficking cases to delays in compensations for crime victims.

Winter’s ouster and the subsequent attrition have alarmed former staff and observers alike, who warn of the long-term implications for Texas’ ability to pursue complex Medicaid fraud cases. The division’s dwindling numbers and loss of institutional knowledge could hinder its effectiveness, leaving the state more vulnerable to fraud and abuse.

As Paxton continues to navigate his legal and political battles, the fate of the Civil Medicaid Fraud Division hangs in the balance. Its ability to continue its mission-critical work against Medicaid fraud remains uncertain, with potential impacts on the state’s finances and the integrity of its Medicaid program. The Texas Tribune’s reporting underscores the need for stability and experienced leadership within the division to ensure the continued protection of Texas’ Medicaid system from fraud and abuse.