AG promises investigation into health insurance company after DOGE committee confrontation

The CEO of a health insurance company that has contracts with the state admitted to hiring private investigators to dig up information on people – and now the Texas Attorney General says his office is investigating.

This comes after a confrontation in a House committee meeting earlier this week.

I reached out to Superior Health Plan this afternoon for a reaction to the attorney general’s announcement but have not received a response from the managed care organization. This comes amidst allegations the company hired private investigators to dig up information on customers, lawmakers and even a journalist.

The press release was sent out by Texas Attorney General Ken Paxton’s office this week, promising an investigation after testimony in a House committee about an insurance company hiring private investigators to follow customers, journalists, and lawmakers. It is a follow up to a confrontation Tuesday in the Texas Department of Government Efficiency House committee: “And when I look at the folder I thought it was a joke. It’s emails with your name on it. And you investigated people that are on this dais for doing their jobs for Texas. What do you have to say for that because they were trying to do their jobs for constituents. What do you say?” Representative Tony Tinderholt asked Mark Sanders, the CEO of Superior Health Plan. “Yeah I think going back in time, I think it was just understanding what interest and information we could have,” Sanders answered.

Tuesday — about three hours into the meeting — the DOGE committee was discussing the procurement process for managed care organizations that have contracts with the state, like superior , when committee chair Giovanni Capriglione, a Republican from Southlake addressed Sanders. “I don’t think what any of us expected was for a health insurance company that is funded mostly by Texas taxpayers dollars, that they would use some of those monies to fire private investigators , that why would fire a private investigator to follow a mom who child was being denied medical care cause that child further damage.”

The committee chair went on to ask Sanders if he had hired investigators to dig into the backgrounds of customers who had filed claims, as well as government leaders and even a reporter. Sanders admitted it was true, saying he just wanted to know about people the company interacted with – an answer that drew scorn from Tinderholt.

“You wanted leverage, and you thought that you were going to use it. I dare you to investigate me. Do it and bring it. I dare you to do that to me,” Tinderholt said.

Paxton said in the press release that those actions were characterized as potential blackmail to secure state contracts and to get out of paying valid medical claims – and if there was any illegal activity., the investigation would uncover it. And, as I mentioned, we reached out to Superior but have not heard back.