Texas Attorney General Ken Paxton opened an investigation into Blue Cross and Blue Shield of Texas, its parent Health Care Service Corporation, and related entities over alleged denials or delays of urgent and medically necessary care and potentially burdensome prior authorization requirements. The investigation is ongoing; the Attorney General issued a Civil Investigative Demand to obtain information and assess potential violations of Texas law.
Because this is an investigation rather than a concluded privacy enforcement action, in-house teams at health plans and healthcare organizations should review vendor and business associate agreements with utilization-review, claims-administration, and prior-authorization vendors for clear medical-necessity review standards, timely handling and escalation of urgent cases, documentation requirements, and audit and cooperation rights. Review customer-facing plan documents and administrative-services agreements for accurate descriptions of coverage, approval criteria, denial reasons, and expedited appeals; ensure service-level commitments do not permit administrative processes to delay urgent treatment. The release does not allege privacy violations, so it does not identify a specific need to revise privacy or breach-notification clauses.
Entity
Health Care Service Corporation (including Blue Cross and Blue Shield of Texas)
Industry
Insurance"Blue Cross Blue Shield of Texas (“BCBSTX”), its parent company, Health Care Service Corporation (“HCSC”), and their related business entities."
"September 28, 2026 | Press Release"
"procedures for denying and delaying urgent and medically necessary care and its potentially burdensome prior authorization requirements."
"including the Texas Deceptive Trade Practices Act (“DTPA”)."
"Attorney General Ken Paxton launched an investigation"
"Attorney General Paxton has issued a Civil Investigative Demand (“CID”) to obtain information"
$3.0M
Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.
$773.0M
Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.
Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.
$1.5M
The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.
The Texas Attorney General opened an investigation into UnitedHealth Group over allegations that its insurance-benefit administration and patient-care decisions denied Texans medically necessary healthcare. The AG issued Civil Investigative Demands to collect evidence; the release announces no penalty or remedy.
$7.5M
Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.