Planned Parenthood of Indiana Stops Accepting Medicaid Patients

June 21, 2011 — Planned Parenthood of Indiana has stopped seeing Medicaid beneficiaries and will cut staff because of a state law that blocks Medicaid payments to providers that offer abortion services, Reuters reports (Guyett, Reuters, 6/20).

The funding ban, which took effect May 10, halts state grants and contracts to organizations that provide abortion services with their own money. Although federal law for years has prohibited the use of federal Medicaid funds to pay for abortion services, PPIN previously could receive reimbursement from Medicaid for the non-abortion-related services it provides (Women's Health Policy Report, 6/17).

Betty Cockrum, president and CEO of PPIN, said the organization had been using donations to pay for care for Medicaid beneficiaries since the law took effect, but the donations have run out. Beginning Tuesday, Medicaid beneficiaries will be seen only if they can pay for care out of pocket, according to a PPIN statement. In addition, two disease intervention specialists will be laid off and most employees will be taking an unpaid day off on Wednesday, the organization said.

Cockrum said, "Our 9,300 Medicaid patients, including those who had appointments Tuesday, are going to see their care disrupted" (Reuters, 6/20).

PPIN Awaits Judge's Decision

U.S. District Judge Tanya Walton Pratt previously rejected a request by PPIN and the American Civil Liberties Union of Indiana -- which is representing PPIN in the case -- to issue an immediate injunction to block enforcement of the measure. Meanwhile, earlier this month, CMS Administrator Donald Berwick sent a letter to Patricia Cassanova, director of Indiana's Office of Medicaid Policy and Planning, warning that "Medicaid programs may not exclude qualified health care providers from providing services that are funded under the program because of a provider's scope of practice." He continued, "Such a restriction would have a particular effect on beneficiaries' ability to access family planning providers." The Indiana law "would eliminate the ability of Medicaid beneficiaries to receive services from specific providers for reasons not related to their qualifications to provide such services," the letter said. Berwick added, "We assume this decision is not unexpected."

Last week, the Department of Justice filed a brief in support of PPIN's request for an injunction, asking that Pratt block the law because it prevents Medicaid beneficiaries from choosing their health care providers. "The public interest strongly supports preserving the freedom of choice that Congress conferred," the brief said (Women's Health Policy Report, 6/17).

The state has until June 24 to respond to the federal government's brief, according to Reuters. Bryan Corbin, spokesperson for the state attorney general's office, said the state is working on a "thorough and thoughtful response."

If Pratt does not rule by July 1, PPIN said it will be forced to close health centers and lay off more staff (Reuters, 6/20). "We send our apologies to our patients and to our staff," Cockrum said, adding, "We remain confident we have a strong case" (AP/Chicago Sun-Times, 6/20).