State of Texas HHSC Cancels TAPS Medicaid Contract

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Thursday morning, November 12, TAPS Public Transit and its operating unit TAPS Access, was notified by the State of Texas Health and Human Services Commission (HHSC) that it has withdrawn its contract for TAPS to provide Medicaid Non-Emergency Medical Transportation (NEMT) in Region 4.

Calls from clients to schedule NEMT trips are being rerouted to other providers and it is expected that there will be no interruption in service for Medicaid clients.

Cancellation of the Medicaid contract means 58 employees, including drivers and call center agents, have been permanently laid off as of 10:00 a.m. Thursday. Those employees were assigned to offices in five counties.

Employees affected included 37 in Grayson, 9 in Wichita, 7 in Collin, 3 in Fannin, and 2 in Wise county.

HHSC officials said that contract monies due to TAPS for the most recent month of service will be used to pay any outstanding debts related to performance of Medicaid services. That includes but may not be limited to, subcontractors, Independent Transportation Providers (ITP) and employees.

Concurrently, the Office of Inspector General, HHSC, is conducting an investigation to determine if there has been fraud in the performance of the Medicaid contract by TAPS. As this is an ongoing investigation, TAPS will not comment further on this matter.

Due to the ongoing investigation by the state OIG, TAPS management will not comment on the details of the inquiry.