-Updated with Attorney General Ken Paxton’s investigation
-Updated to reflect CEO Mike Sanders’ termination from Superior HealthPlan
Lawmakers expressed serious concerns this week after learning that one of the state’s largest Medicaid contractors had hired private investigators to gather information on patients, journalists, and even public officials.
And now, the Texas Attorney General has launched an investigation into potential criminal spying and blackmail.
During testimony before the Texas House Committee on the Delivery of Government Efficiency, or DOGE, Superior HealthPlan CEO Mark Sanders confirmed that the company had in the past employed private investigators to look into individuals who had either filed claims or were otherwise connected to company-related disputes.
“We’ve done what I would call general research—anything that’s publicly available,” Sanders told the committee. “Yes, we have done that, but nothing beyond what is publicly available.”
Committee Chairman Giovanni Capriglione (R–Southlake) pressed Sanders on the scope and motivation behind the investigations, citing emails from Sanders to private investigators.
“There was a report … of an insurance company that was denying claims,” Capriglione said. “But I don’t think what any of us expected was for a health insurance company that is funded mostly by Texas taxpayer dollars … that they would use some of those monies to hire private investigators, that they would hire a private investigator and follow a mom whose child was being denied medical care… that this health insurance company would pay this private investigator to follow her around.”
Capriglione also noted that one of the individuals targeted by Superior’s investigators was a woman named Heather, who was paralyzed from the neck down. According to Capriglione, the company’s investigator—acting at Sanders’ direction—looked into her former employment and social connections in an apparent attempt to determine whether she had ulterior motives for speaking out.
“But it didn’t stop there. You also decided that you were going to go after the journalist who had written this article to expose, or at least illustrate and document what had happened. So you went and you hired a private investigator to do that as well.”
Capriglione then posed a direct question: Had Superior ever hired investigators to look into state officials or their families?
Sanders replied, “We’ve done that research on those individuals, but not for the intent of a procurement.”
That revelation triggered strong reactions from lawmakers—particularly State Rep. Tony Tinderholt (R–Arlington).
“I gotta be honest, I was handed this folder—pretty disgusted with what I see in it. And I’m looking at you,” he told Sanders. “You investigated people that are on this dais for doing their job for Texans. That’s despicable.”
“I would never in a million years consider investigating a legislator for doing their job,” he added. “I dare you to investigate me. Do it. And then bring it.”
Tinderholt also suggested the actions might merit a legal review.
“I would ask the attorney general to potentially investigate your actions on whether they were legal and whether you tried to use what you found out … in order to gain billion-dollar contracts.”
On Thursday afternoon, Attorney General Ken Paxton announced his office has launched an investigation into Superior over alleged illegal spying or blackmailing of lawmakers, journalists, and private citizens.
“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,” said Paxton. “I will get to the bottom of this, uncover any illegal activity, and hold bad actors responsible. Justice will be served.”
Sanders has since been fired from Superior since the hearing took place.
Though Sanders emphasized that the investigations were limited to publicly available information, lawmakers questioned both the judgment and appropriateness of the actions—especially given the public dollars at stake.
