WASHINGTON — A federal judge ruled Friday that the State of Indiana could not cut off money for Planned Parenthood clinics providing health care to low-income women on Medicaid.
The judge, Tanya Walton Pratt of the Federal District Court in
Indianapolis, blocked provisions of a new state law that penalized
Planned Parenthood because some of its clinics performed abortions. The
law, she said, conflicts with the federal Medicaid statute, which
generally allows Medicaid beneficiaries to choose their health care
providers.
Planned Parenthood provides services other than abortion, including family planning and screenings for cancer and sexually transmitted diseases.
In issuing a preliminary injunction late Friday, Judge Pratt said the
state law “will exact a devastating financial toll on Planned Parenthood
of Indiana and hinder its ability to continue serving patients’ general
health needs.”
The law took effect immediately when it was signed on May 10 by Gov. Mitch Daniels, a Republican.
As of June 20, the judge said, Planned Parenthood of Indiana stopped
treating its Medicaid patients and laid off two of its three specialists
in sexually transmitted diseases. The judge said that “only a small
percentage” of Planned Parenthood’s services involved abortion.
“States do not have carte blanche to expel otherwise competent Medicaid
providers,” Judge Pratt said. And “there are no allegations that Planned
Parenthood of Indiana is incompetent or that it provides inappropriate
or inadequate care.”
The ruling has national significance. At least a half-dozen states have
taken aim at Planned Parenthood because its clinics perform abortions,
about one-fourth of all those performed in the United States.
Judge Pratt gave “some measure of deference” to a ruling by the Obama
administration, which on June 1 denied approval for the changes that
Indiana wanted to make in its Medicaid program.
The federal government could terminate some or all of Indiana’s Medicaid
money if the state persisted in violating federal Medicaid law.
“The public interest tilts in favor of granting an injunction,” Judge
Pratt declared. “The federal government has threatened partial or total
withholding of federal Medicaid dollars to the State of Indiana, which
could total well over $5 billion annually and affect nearly one million
Hoosiers.”
Moreover, she said: “Denying the injunction could pit the federal
government against the State of Indiana in a high-stakes political
impasse. And if dogma trumps pragmatism and neither side budges,
Indiana’s most vulnerable citizens could end up paying the price as the
collateral damage of a partisan battle.”
Marcus J. Barlow, a spokesman for the Indiana Family and Social Services
Administration, said the state would comply with the preliminary
injunction, but could also appeal.
Bryan Corbin, a spokesman for the Indiana attorney general, Greg
Zoeller, said the state was likely to seek review by the United States
Court of Appeals for the Seventh Circuit, in Chicago.
Since the law was signed, Judge Pratt said, Planned Parenthood of
Indiana has seen a surge in donations from supporters. But, she said,
“these donations were something of an aberration.”
“Common sense suggests that as headlines fade, passions will cool and
donations will level off,” the judge said. “Thus, with the passage of
time, Planned Parenthood of Indiana will be forced to confront the dire
financial effects” of the new state law.
State officials argued that Indiana could exclude Planned Parenthood
from its Medicaid program because states have the authority to determine
who is a “qualified” provider. But, the judge said, that determination
cannot be based on factors unrelated to a provider’s Medicaid services.
For years, federal law has banned the use of Medicaid money to pay for abortion except in certain cases of rape or incest or danger to the life of a pregnant woman.
The Indiana law goes much further. It prohibits state agencies from
entering contracts with or making grants to “any entity that performs
abortions or maintains or operates a facility where abortions are
performed.” It also terminates existing state contracts with such
entities. The law does not apply to hospitals.
Planned Parenthood of Indiana and two of its patients filed the suit,
challenging the new restrictions as “a blatant violation” of federal
law. Judge Pratt agreed, finding the Indiana measure “unlawfully narrows
Medicaid recipients’ choice of qualified providers.”