"I don't think what any of us expected was for a health insurance company that is funded mostly by Texas taxpayer dollars would use some of those monies to hire private investigators," chair of the committee Rep. Giovanni Capriglione said.

The private investigations Sanders orchestrated allegedly began in 2017. Sanders said the company does not engage in this practice anymore.

"We've done what I would call general research," Sanders said during the hearing. "Anything that's publicly available."

On Thursday, Sanders was fired, according to the Dallas Morning News. Superior HealthPlan did not respond to a request for comment.

Paxton announced he would investigate the company, stating: "Justice will be served."

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"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," Paxton said. "I will get to the bottom of this, uncover any illegal activity, and hold bad actors responsible."

Tae Andrews, a policyholder insurance recovery attorney, said he has seen insurance companies use many strategies to deny, delay or underpay coverage, but he has never seen them allegedly surveil people in this manner.

"An insurance company is entitled to investigate a claim," Andrews said. "But if you're hiring private investigators to spy on people and potentially blackmail them to influence policy is, frankly, insane. It just shows how much money and power insurance companies have."

If Paxton's investigation concludes these claims are true, Andrews said the Texas attorney general should make an example out of the insurance company "to deter other insurance companies from trying these nefarious tactics."

"Sunlight is the best disinfectant," Andrews said. "This is unfair. This reeks of corruption. ... There's no place for this in a healthy, functioning democracy."