On Wednesday, a federal judge is set to deliberate on whether a recently enacted spending law, which ceased Medicaid reimbursements for Planned Parenthood, should remain in effect amid ongoing legal disputes.
The tax and spending cut legislation introduced under President Donald Trump specifically targets organizations that conduct abortions and receive over $800,000 annually in Medicaid reimbursements. Planned Parenthood contends that this law infringes upon the Constitution, while anti-abortion advocates have praised the measure.
An appeals court previously decided that the law could be enacted starting in September, pending a lower court’s review of Planned Parenthood’s arguments.
Ahead of the hearing, Planned Parenthood disclosed in a Wednesday morning report that the legislation resulted in a $45 million expense in September alone, as clinics nationwide covered Medicaid patient treatment costs without reimbursement—a situation they claim is unsustainable.
Approximately half of Planned Parenthood’s service recipients depend on Medicaid for healthcare services other than abortions, which Medicaid already does not cover. Medicaid serves millions of low-income and disabled individuals across the United States.
Legal Battle
The Planned Parenthood Federation of America, along with its affiliates in Massachusetts and Utah, and a prominent Maine medical provider, have initiated lawsuits against Health and Human Services Secretary Robert F. Kennedy Jr. since July. The Maine provider has had to halt its primary care services as its lawsuit is processed through the courts.
Meanwhile, seven states—California, Colorado, Massachusetts, New Jersey, New Mexico, New York, and Washington—have allocated state funds to offset the loss of federal Medicaid reimbursements.
This state intervention has covered about $200 million of the $700 million that Planned Parenthood annually allocates for Medicaid patients, as reported by the organization.
In response to the funding gap, some clinics may require Medicaid patients to pay out of pocket, while others face closure, adding to the 20 Planned Parenthood clinics that have shut down since July and the total of 50 closures since the commencement of Trump’s second term.
“The consequence is for patients who are going to be forced to make impossible choices between essential services,” expressed Planned Parenthood President and CEO Alexis McGill Johnson in a dialogue with The Associated Press.
Abortion at the Core of the Discussion
Carol Tobias, head of the National Right to Life Committee, views Trump’s legislation as a positive advancement. Although federal funds are not directly used for abortions, she argues that Medicaid reimbursements indirectly support organizations offering abortions, thus involving taxpayer money against the moral or religious beliefs of some individuals.
“To be forced to pay for that is just very objectionable,” Tobias stated.
She proposed that Planned Parenthood could cease abortion services if it wishes to continue providing medical care to at-risk populations.
Planned Parenthood’s president reaffirmed the organization’s dedication to offering abortion services.
“The government should not play a role in determining any pregnancy outcomes,” Johnson asserted.
Impact on a Variety of Services
Despite being the nation’s largest abortion provider, abortions constituted only 4% of all medical services offered by Planned Parenthood in 2024, according to its annual report. Services related to sexually transmitted infections and contraception represent about 80%, while the remaining 15% encompass cancer screenings, primary care, and behavioral health services.
Jenna Tosh, CEO of Planned Parenthood California Central Coast, noted that the Medicaid funding cuts equally jeopardize both abortion and non-abortion medical services. Tosh emphasized that roughly 70% of patients utilizing Planned Parenthood California Central Coast rely on Medicaid.
“Many of our patients, we are their primary provider of health care,” Tosh explained. “You really start pulling at the thread of the entire health care safety net for the most vulnerable people.”
