Ken Paxton Sues a Children's Hospital in Texas for Fraud, AG Says Taxpayers Footed Bill for Trans Child Mutilation
Texas Attorney General Ken Paxton is suing a major health care provider and a pediatric doctor for allegedly providing banned gender transition services and falsely labeling services to get Medicaid reimbursement.
Children’s Health System of Texas and Dr. Jason Jarin are the defendants in the lawsuit, according to a news release posted on Paxton’s website.
“I will use every legal tool available to ensure radical gender activists like Jarin face justice for hurting our kids,” Paxton said.
“This criminal extremist not only permanently harmed children, but he also then defrauded Medicaid and stuck Texas taxpayers with the bill for this insanity. Experimental ‘transition’ procedures on minors are illegal, unethical, and will not be tolerated in Texas,” he continued.
Paxton said the scheme to bill Medicaid for banned procedures, which Paxton alleged took place on children as young as 9, dates back to 2017.
He alleged that the scheme continued even after Sept. 1, 2023, when a state law went into effect banning gender transitions for minors.
🚨KEN PAXTON just DROPPED a BOMBSHELL lawsuit!
Filed against Children’s Health (the 7th-largest pediatric hospital in the country) and a Dallas-area doctor for ILLEGALLY “transitioning” kids and DEFRAUDING Medicaid, hurting vulnerable children while ripping off taxpayers.… pic.twitter.com/BWLO8O1Gng
— Gunther Eagleman™ (@GuntherEagleman) February 18, 2026
The release added that “Children’s Health and Jarin likely engaged in false, misleading, and deceptive acts in violation of Texas law. They did this by falsifying or misrepresenting medical records, prescriptions, and billing submissions to pharmacies, insurers, and Medicaid.”
Paxton is seeking more than $1 million in damages against the state.
“Although Texas law bans dangerous and experimental sex-rejecting procedures on children, the scourge of so-called ‘gender affirming care’ persists in the State of Texas,” the lawsuit said.
“Even worse, Texas taxpayers have been on the hook for millions of dollars in gender transition surgeries, hormones, and other procedures that turn otherwise healthy children and young adults into chronic medical patients. No longer,” the lawsuit added.
“For years, Dr. Jason Jarin, a radical gender activist, has billed Texas Medicaid and the Children’s Health Insurance Program (‘CHIP’) for gender interventions on children as young as 9 years old. Jarin is a pediatric gynecologist, but he regularly performs procedures and medicates both female and male patients with puberty blockers and cross-sex hormones,” it continued.
“Since 2017, Jarin and Children’s have engaged in health care fraud by billing for sex change services that are specifically barred by Texas Medicaid and CHIP and using false diagnosis codes to obscure the nature of the interventions,” the lawsuit said.
“Among other things, Jarin and Children’s falsely billed transgender claims as ‘endocrine disorders.’ They implanted puberty blockers in otherwise healthy children under the guise of ‘precocious puberty.’”
“They billed for ‘hormone replacement therapy’ (a code for actual hormonal deficiencies), or ‘other long-term drug therapy.’ They claimed that girls had ‘excessive,’ ‘irregular’ menstruation or ‘other conditions associated with female genital organs and menstruation,’ in order to suppress their otherwise normal periods. And they billed for ‘contraception’ implants and medications for boys when Jarin was actually prescribing them cross-sex estrogen,” the lawsuit added.
Children’s Health remarked to KERA-TV in a statement that its “top priority is the health and well-being of the patients and families we serve.”
“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,” the statement read.
CLARIFICATION, MARCH 4, 2026: The headline has been updated to remove confusion over the subject of the lawsuit, which is Children’s Health System of Texas, not Texas Children’s Hospital.
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