Texas AG Goes Nuclear: Gender Medicine Fraud Case Sparks Legal Blitz
- Levi Mikula
- 4 days ago
- 4 min read
Texas Attorney General Ken Paxton filed a lawsuit this week against Children’s Health System of Texas, one of the country’s largest pediatric hospitals, as well as Jason Jarin, a Dallas-area pediatric doctor, for violating Senate Bill 14 (SB 14) and defrauding Medicaid. “I will use every legal tool available to ensure radical gender activists like Jarin face justice for hurting 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,” the statement reads.
According to the announcement, Children’s Health and Dr. Jarin have been billing Medicaid and CHIP (the Children’s Health Insurance Program) for puberty blockers and cross-sex hormones for children as young as nine, and the alleged fraud dates back to 2017. Texas AG Ken Paxton said that Dr. Jason Jarin, a division director at Children’s Health and a pediatric gynecologist, “regularly performs procedures and medicates both female and male patients with puberty blockers and cross-sex hormones.” Dr. Jarin has seen patients for gender interventions at the Dallas and Plano locations. State officials say Medicaid and CHIP billing records are central to these investigations because they allow investigators to track treatment timelines and determine which prescriptions were written after the law took effect. Those records show when treatments occurred and whether public funds were used to reimburse procedures that are now prohibited under Texas law. Despite SB 14 taking effect on September 1, 2023, the lawsuit alleges that Children’s Health and Jarin continued to provide puberty blockers and cross-sex hormones to children.
Texas Attorney General Ken Paxton is seeking over $1 million in monetary relief.
Ken Paxton – ABC13 Houston
The lawsuit filed by the Texas Attorney General against Children’s Health and Dr. Jarin is the latest in a series of enforcement actions targeting physicians accused of continuing pediatric gender-transition procedures after Senate Bill 14 (SB 14) took effect. SB 14 set a clear legal boundary. Earlier lawsuits targeted Dallas physician Dr. May Lau, accused of prescribing testosterone to at least 21 adolescent girls, and El Paso physician Dr. Hector Granados, who was investigated for allegedly providing puberty blockers and cross-sex hormones to minors as young as 12. The case against Dr. Granados was later dropped after officials determined his clinic had closed before SB 14 took effect. Even so, state officials cited the investigation as evidence of how widespread the practices were before the law and used it to support stricter enforcement after its passage.
Court filings in related cases also allege that some providers attempted to continue treatments, bypassing statewide bans by changing diagnostic codes, listing prescriptions under different medical justifications, or continuing treatment plans that were started before the ban. Investigators agree that this enabled some providers to keep prescribing hormones without disclosing the reason for treatment in the billing and medical records. Prosecutors have argued that relabeling treatments on paperwork does not exempt providers from complying with the law. If a claim is filed with public insurance, the provider may be committing healthcare fraud.
Healthcare Fraud – The Western Journal (2026)
An active lawsuit against Dr. Brett Cooper, a pediatrician who surrendered his medical license in October 2025, alleges that the Dallas physician continued to distribute cross-sex hormones to children “for the purpose of transitioning their biological sex or affirming their belief that their gender identity or sex is inconsistent with their biological sex” by falsifying medical records. Paxton’s office further accuses Dr. Cooper of violating the Rule 11 Agreement, which restricts him from practicing medicine during the proceedings, with the case expected to go to trial in May 2026. The growing number of lawsuits shows that the issue has moved from legislative debate to courtroom enforcement, where judges will decide the extent to which the state can regulate pediatric gender transition. As several cases are being heard at the same time, the Texas courts can quickly issue precedents that will affect the countrywide implementation of such laws and lay the groundwork for future legal battles over medical supervision, parental rights, and government-funded healthcare.
References
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