Dive Brief:
A federal judge on Monday temporarily halted the Trump administration from enforcing a provision of its recently passed tax and policy law that would cut Medicaid funding for Planned Parenthood.
District Judge Indira Talwani, an appointee of former President Barack Obama, blocked the provision for 14 days. The court scheduled a hearing on July 21 to consider a longer injunction.
The restraining order came hours after the provider sued over the law, arguing the funding provision singles out Planned Parenthood to punish the organization for offering abortion services and advocating for reproductive healthcare.
Dive Insight:
In a statement to Healthcare Dive on Tuesday, Planned Parenthood said it’s “grateful that the court acted swiftly” to issue the restraining order, but noted health centers have already “been forced to turn away patients who use Medicaid to get basic sexual and reproductive health care” because of the law.
Planned Parenthood’s suit centers on a provision in the massive tax and policy legislation signed into law by President Donald Trump on July 4. One portion of the law blocks Medicaid funds for services offered by abortion providers like Planned Parenthood for one year.
Planned Parenthood argues the provision specifically targets the provider by limiting the application of the law to nonprofits that primarily offer family planning services and received more than $800,000 in Medicaid reimbursements in fiscal year 2023.
The organization said the affected group is “made up almost entirely” of Planned Parenthood affiliates. If allowed to stand, the funding cuts could have serious consequences for Medicaid beneficiaries who access care at Planned Parenthood’s health centers, the provider said in the suit.
More than 1 million patients use Medicaid to cover healthcare services like birth control and cancer screenings at its clinics, Planned Parenthood said in a Monday press release. Almost 200 health centers across 24 states are at risk of closure if Planned Parenthood loses access to Medicaid funding, the organization added.
Planned Parenthood argues the defunding provision attempts to penalize the nonprofit for its history of offering and advocating for abortion services.
“There is no legitimate justification for the statute; rather, the true design of the Defund Provision is simply to express disapproval of, attack, and punish Planned Parenthood, which plays a particularly prominent role in the public debate over abortion and (if Planned Parenthood’s Members are treated collectively) is the only nationwide abortion provider,” Planned Parenthood wrote in the suit.
Additionally, if the provision is allowed to stay in effect, the provider argued it shouldn’t apply to members who don’t meet the law’s requirements independently. For example, Planned Parenthood Association of Utah, an affiliate included as a plaintiff in the lawsuit, received $706,251 in Medicaid reimbursements in fiscal year 2023, below the provision’s $800,000 threshold.
The Medicaid policy changes come shortly after another blow to Planned Parenthood. In late June, the Supreme Court ruled states could block Medicaid funds to abortion providers.
