White House Says Indiana Law Could Cost the State Medicaid Funding

by Gabe Bullard on June 3, 2011

A recent law in Indiana that blocked government funding to Planned Parenthood could backfire.

The bill is aimed at blocking abortion, and it stops any Medicaid funding from going to Planned Parenthood. The organization receives about $3 million for services, but cannot use the money on abortions. While Planned Parenthood is challenging the law in court, federal action could force a repeal sooner.

President Barack Obama’s administration—through the Centers for Medicare and Medicaid Services— says the state law violates the rules for Medicaid, and as such, Indiana could lose its $4 billion Medicaid allocation if the law is enforced.

Indiana Attorney General Greg Zoeller’s office issued a statement saying its lawyers are reviewing the White House’s position and will continue to defend the law in the meantime.

Planned Parenthood serves about 9,000 Medicaid patients. Through donations, the agency will be able to continue seeing those patients until June 15th. A hearing on Planned Parenthood’s challenge to the law will be held Monday.

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