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COPYRIGHT 2001 The Dallas Morning News
Feb. 24--Electronic Data Systems Corp. -- accused of overcharging the state of Texas on a Medicaid contract -- built its $19 billion-a-year global computer services empire largely through government work.
For years, the business of processing claims for states has been intensely competitive and politically charged, and EDS has found itself embroiled in several disputes with other states.
But the criminal investigation in Texas appears to be the company's most serious run-in yet over a big-dollar government contract.
The Travis County district attorney said this week that he has convened a grand jury to investigate whether EDS overcharged the state, potentially by more than $10 million. The allegations came to light after searches of company records in Plano and in Austin, where an EDS subsidiary, National Heritage Insurance Co., administers the Medicaid contract.
On Friday, EDS said it hasn't uncovered...
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