The US Centers for Medicare and Medicaid Services (CMS) said on Wednesday that Indiana cannot enforce a new state law that cuts money for Planned Parenthood clinics offering care to low-income women on Medicaid.
The measure, signed into law on May 10 by Gov. Mitch Daniels (R), prohibits state agencies from making contracts with or issuing grants to “any entity that performs abortions or maintains or operates a facility where abortions are performed.” The law terminates Indiana’s contracts with any such group, with the exception of hospitals. Federal law has long banned the use of Medicaid funds for abortion except under certain circumstances.
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,” Dr. Donald M. Berwick, CMS administrator, wrote in a letter to Indiana officials. Freedom to choose a provider, he said, is generally guaranteed by federal Medicaid law.
In a bulletin issued Wednesday, Cindy Mann, the federal official who supervises Medicaid, reminded officials across the country that states cannot exclude providers from Medicaid “because they separately provide abortion services.” Changes in state Medicaid plans are subject to federal review and approval.
Even so, Indiana officials said they will continue to enforce the law.
Planned Parenthood of Indiana served 85,000 patients last year. While 5,580 underwent abortion, most received contraceptives or preventive health screenings.
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