Texas Attorney General Ken Paxton (pictured right) has launched an investigation into allegations that Centene Corp.’s Superior HealthPlan Inc. hired private investigators to surveil legislators, journalists, and private citizens with pending claims.
At a public hearing in the Texas House of Representatives on March 26, Superior HealthPlan CEO Mark Sanders acknowledged the use of a private investigator to conduct background research, according to a statement from Paxton’s office. Lawmakers expressed concerns that the company used these tactics to gain leverage in state contract negotiations and to discredit policyholders with legitimate claims.
“The allegations concerning Superior’s actions, such as actions that were characterized as potentially blackmailing lawmakers to secure state contracts and surveilling private citizens to avoid paying legitimate claims, are deeply troubling,” Paxton said. “I will get to the bottom of this, uncover any illegal activity, and hold bad actors responsible.”
Republican state Rep. Giovanni Capriglione, chairman of the House’s Delivery of Government Efficiency Committee, questioned Sanders about accusations that the company had investigators track a mother whose child was denied health care, probe the background of a paralyzed woman, and target a journalist who reported on these issues. Capriglione also asked whether the company sought personal and financial records of Texas officials and their spouses.
Sanders admitted the company had conducted such activities but described them as general research using publicly available information. When pressed on the rationale, Sanders said the company “just really wanted to have information on those individuals, and really nothing beyond what was publicly available to us.” He added that the practice ended several years ago.
Asked whether Superior HealthPlan had surveilled elected officials outside of Texas, Sanders denied any such activity.
“I think we are going to find out if you did,” Capriglione responded before the committee moved on.
Superior HealthPlan is a Texas-based managed care organization that provides services through Medicaid, Medicare, and the Affordable Care Act marketplace. It is a subsidiary of Centene Corp., one of the largest providers of government-sponsored health care in the US.
Centene has previously faced regulatory scrutiny. In recent years, the company settled multiple lawsuits with state governments over allegations of overcharging Medicaid programs for pharmacy benefits. In 2022, Centene agreed to pay more than $1.25 billion to settle claims in several states related to its pharmacy benefit practices, though it did not admit wrongdoing.
Attempts to obtain comment from Superior HealthPlan were unsuccessful. Reports that Sanders was fired following his testimony could not be immediately confirmed.
Centene reported net earnings of $283 million in the final quarter of 2024, up from $45 million a year earlier, driven by Medicaid rate increases and strong Affordable Care Act marketplace results.
The company remains a major player in government-funded health care, managing millions of beneficiaries across multiple states.
The Texas investigation adds to Centene’s growing regulatory challenges as it continues to negotiate contracts with state governments.
