Planned Parenthood filed a lawsuit Monday challenging a provision in Republicans’ budget reconciliation law that would make the abortion provider ineligible for Medicaid reimbursements for one year.
Federal funding cannot be used for abortion except in rare circumstances, under the annual Hyde amendment rider. But organizations that provide abortions have been eligible for federal Medicaid reimbursements for providing other health services such as contraception or sexually transmitted infection testing.
The sweeping domestic policy and tax law prohibits organizations from being eligible for Medicaid funds if they provide abortions; qualify as an Essential Community Provider, which serves low-income and medically underserved residents; and met a threshold of $800,000 in Medicaid reimbursements in 2023.
