AUSTIN (KXAN) – Children’s Health System of Texas and a Dallas area doctor are facing a lawsuit from the Texas Attorney General’s Office claiming they participated in Medicaid fraud and violated Senate Bill 14.

A press release from Texas Attorney General Ken Paxton’s office asserts that Pediatric Adolescent Gynecologist Jason Jarin and Children’s Health did illegal acts under the Texas Health Care Program Fraud Prevention Act (“THFPA”) by changing patients’ gender.

“I will use every legal tool available to ensure radical gender activists like Jarin face justice for hurting our kids,” Paxton said in a statement.

The lawsuit claims Dr. Jarin engaged in a fraud scheme by billing Texas Medicaid for cross-sex testosterone, estrogen and puberty blockers, which is not allowed by Texas law.

Children’s Health affirmed that patient health and well-being is its top concern.

“We comply with all applicable local, state and federal health care laws. Due to ongoing legal proceedings, we are unable to comment further at this time,” wrote Children’s Health in an email statement to KXAN.

Enacted September 2023, Senate Bill 14 prohibits gender-affirming care including puberty blockers, hormone therapy and transitional surgery for minors.

Jarin is the fourth suit from the Texas Attorney General’s Office claiming a violation of SB 14 and the third doctor from Dallas.

Also, following Dr. May Lau, this is the second lawsuit aimed at a doctor from UT Southwestern in violation of SB 14.

The attorney general’s office is seeking over $1 million in damages including civil penalties.

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