In brief
The controversy over a federal spending bill that ended Medicaid reimbursements for Planned Parenthood is heating up as a federal judge is set to hear arguments on the law's legality. Planned Parenthood contends the law is unconstitutional and has reported significant financial losses. The law predominantly affects organizations providing essential health services to low-income individuals, with states stepping in to mitigate the impact.
A federal judge will hear arguments Wednesday about whether a spending law passed in July that ended Medicaid reimbursements for Planned Parenthood can remain in effect while legal challenges continue.
President Donald Trump’s tax and spending cut bill targets organizations that both provide abortions and receive more than $800,000 a year in Medicaid reimbursements. Planned Parenthood has argued the law violates the Constitution, while anti-abortion activists applauded the legislation.
An appeals court ruled that the law could go into effect in September while a lower court considered Planned Parenthood’s claims.
In a report released Wednesday morning ahead of the hearing, Planned Parenthood said the legislation cost $45 million in September alone as clinics across the country paid for treatment for Medicaid patients out of pocket — a rate that the organization says is unsustainable.
Nearly half of Planned Parenthood’s patients rely on Medicaid for health care aside from abortions, which was already not covered by the federal insurance program that serves millions of low-income and disabled Americans.
Legal Fight
Planned Parenthood Federation of America and its member organizations in Massachusetts and Utah, as well as a major medical provider in Maine, filed lawsuits against Health and Human Services Secretary Robert F. Kennedy Jr. in July. The Maine provider has been forced to stop its primary care services while its lawsuit works its way through the courts.
In the meantime, seven states — California, Colorado, Massachusetts, New Jersey, New Mexico, New York and Washington — have directed state funds to compensate for lost federal Medicaid reimbursements.
That has covered roughly $200 million of the $700 million that the organization spends annually on Medicaid patients, according to Planned Parenthood.
In light of the shortfall, some clinics will force Medicaid patients to pay out of pocket while others will close altogether, adding to the 20 Planned Parenthood affiliated clinics that have closed since July and the 50 total that have closed since the start of Trump’s second term.
“The consequence is for patients who are going to be forced to make impossible choices between essential services,” Planned Parenthood President and CEO Alexis McGill Johnson said in an interview with The Associated Press.
Abortion at the Heart of the Debate
Carol Tobias, president of the National Right to Life Committee, said Trump’s legislation is a step in the right direction. Even though federal tax dollars aren’t used for abortions directly, she said taxpayers are contributing to abortion services even if they are morally or religiously opposed since Medicaid reimbursements help organizations that provide them stay afloat.
“To be forced to pay for that is just very objectionable,” Tobias said.
She suggested Planned Parenthood could stop offering abortions if it wanted to keep providing medical care to vulnerable populations.
Planned Parenthood’s president has doubled down on the organization’s commitment to providing abortions.
“The government should not play a role in determining any pregnancy outcomes,” Johnson said.
A Range of Services Hit
Planned Parenthood is the country’s largest abortion provider, but abortions only constituted 4% of all medical services in 2024, according to the organization’s annual report. Testing for sexually transmitted infections and contraception services make up about 80%. The remaining 15% of services are cancer screenings, primary care services and behavioral health services.
Jenna Tosh, CEO of Planned Parenthood California Central Coast, said in an interview that the Medicaid cuts threaten abortion and non-abortion medical care in equal measure. Roughly 70% of patients who use Planned Parenthood California Central Coast rely on Medicaid, she said.
“Many of our patients, we are their primary provider of health care,” Tosh said. “You really start pulling at the thread of the entire health care safety net for the most vulnerable people.”
