Texas Medicaid Contractor Found Liable for Late Audit Findings

The Texas Supreme Court found a Medicaid contractor is still liable for charges found in an audit conducted in years outside the accepted terms of its contract with the state.

In an opinion issued Friday, the court held that Image API LLC, a document-processing vendor for the Texas Health and Human Services Commission, which runs the state’s Medicaid program and other benefits like SNAP and TANF, qualifies as a Medicaid contractor under state law. The court also found the company on the hook for overpayments derived from independent audits mandated by Texas law.

The case stemmed from a 2016 audit ...