DOJ Plans to Join Planned Parenthood Medicaid Fraud Case

A Planned Parenthood sign is displayed on the outside of a clinic in Indianapolis on Aug. 1, 2023. AP Photo/Darron Cummings, File

The Department of Justice signaled intent to join a Texas lawsuit accusing Planned Parenthood of Medicaid fraud, according to a Nov. 6 court filing.

Two Department of Justice lawyers formally notified a federal court that they would represent the United States in the Medicaid fraud lawsuit against Planned Parenthood, according to a court filing. The department, under the Biden administration, declined to join the case when it was first filed in 2021.

The Department of Justice didn’t respond to an email seeking comment.

Susan Baker Manning, senior vice president of Legal & General Counsel for Planned Parenthood Federation of America, said in a statement on Saturday that it would “fight this every step of the way, including at trial.”

“The Trump administration has spent two years trying to shut down Planned Parenthood through legislative, administrative, and legal attacks,” she wrote. “Now, they are going to use the Department of Justice to try again.They want to bully Planned Parenthood out of business.”

Planned Parenthood said the case is expected to go to trial in 2027.

Planned Parenthood Federation of America and its affiliates said they reserve the right to oppose a Justice Department request to join the case, seek additional evidence, and ask for more time. Texas and Alex Doe, the whistleblower who filed the lawsuit, argued that the Planned Parenthood organizations “have no rights to additional discovery or deadline extensions.”

The $1.8 billion lawsuit alleges that the national organization helped three regional affiliates continue submitting Medicaid claims after they were terminated from the program.

The dispute dates back to 2015, when health officials in Texas and Louisiana notified Planned Parenthood affiliates that they intended to remove them from their Medicaid programs. Planned Parenthood challenged those decisions in federal court and obtained orders allowing them to continue participating.

Doe filed the fraud lawsuit in February 2021 on behalf of the United States, Texas, and Louisiana. Texas elected to join the case in November that year and filed its own complaint in January 2022. The state alleged that Planned Parenthood had received about $10 million in Texas Medicaid reimbursements for services provided between February 2017 and March 2021 and should have returned the money. Texas sought triple the amount it said was owed, plus civil penalties for each day the organization failed to pay.

“It is unthinkable that Planned Parenthood would continue to take advantage of funding knowing they were not entitled to keep it.” Texas Attorney General Ken Paxton said in 2022. “I will not allow them to benefit from this abhorrent conduct after they were caught violating medical standards and lying to law enforcement.”

Texas officials based their decision to remove the Planned Parenthood affiliates from Medicaid largely on undercover video showing staff discussing the possible sale of liver, thymus, and neural tissue from babies aborted during the second trimester. The state agency said the footage showed that the affiliates had failed to follow accepted medical and ethical standards.

Planned Parenthood appealed before the trial court had reached a final decision. It argued that its attorney-immunity defense entitled it to an immediate appeal. The Fifth Circuit said the case didn’t qualify for that exception.

Planned Parenthood alleged in 2023 that the lawsuit filed by the anonymous plaintiff was filed in Amarillo so that it could go before Judge Matthew Kacsmaryk, a Trump-appointed federal judge who ruled in 2023 to suspend Food and Drug Administration approval of abortion drug mifepristone.

Planned Parenthood said its closest affiliate health center was more than 100 miles away from Amarillo. It also stated that none of the Medicaid claims in question were filed from Amarillo.

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