National Planned Parenthood Denies Liability in $1.8B Texas Medicaid Fraud Case

The Planned Parenthood Federation of America supports local affiliates. Recently, it requested a federal appeals court to intervene. It argues that it should not be liable in a Medicaid fraud lawsuit. The case alleges fraud against Texas's Medicaid program. The claimed amount is $1.8 billion.

Is the Nationwide Body of Planned Parenthood Responsible?

In its briefing before the New Orleans-based 5th U.S. Circuit Court of Appeals, Planned Parenthood denied the claims of Medicaid fraud as part of the federal False Claims Act. The organization stressed that it does not provide healthcare services or submit any Medicaid claims. Their arguments stemmed from critiquing the previous decision by U.S. District Judge Matthew Kacsmaryk in Amarillo, Texas, who ordained that Planned Parenthood must face trial alongside its regional and local factions mentioned in the lawsuit.

The briefing emphasized the attorney immunity doctrine, shielding lawyers from lawsuits for their role in advising legal strategies. Planned Parenthood contends that these claims only arose from its lawyers' actions, not the organization itself.

Scheduled Appeal and its Key Participants

The appeal, slated to be argued on March 13, does not include the direct involvement of the state of Texas. The regional Planned Parenthood affiliates mentioned in the lawsuit, namely Planned Parenthood of Greater Texas and Planned Parenthood South Texas, among others, are also not part of this appeal.

Threading it back to its origin, an anonymous plaintiff filed the lawsuit laying claims of undercover videos in 2015 allegedly showing Planned Parenthood staff talking about the sale of tissue from aborted fetuses. Planned Parenthood countered these claims, labeling the videos as heavily edited and misleading while denying any wrongdoing.

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The Lawsuit Takes a Complex Turn

The subject videos prompted both Texas and Louisiana to declare intentions to terminate Planned Parenthood as a Medicaid provider in their states, but federal court orders prevented these terminations. The orders were lifted much later, enabling Texas and Louisiana to end their contracts with Planned Parenthood in 2021 and 2022, respectively.

The lawsuit now accuses Planned Parenthood and its affiliates of fraud, alleging continuation of billing and collecting payments from Medicaid programs post-termination decisions without repayment once the terminations took effect. While Texas has joined the lawsuit, Louisiana has refrained.

A partial agreement was given to the plaintiff's and Texas's request for summary judgment in October by Judge Kacsmaryk, finding Planned Parenthood obligated to return funds paid by the states after termination. He hasn't yet ruled on the knowledge aspect of Planned Parenthood breaking the law, which remains a trial subject.

Planned Parenthood sticks to explaining that there was nothing inappropriate with billing the states while the termination was being blocked and that neither state ever demanded a refund of the money.

The case is still in progress, with Planned Parenthood championing against the serious accusations that could potentially threaten its ability to operate in Texas.

RELATED TOPIC: Justice Department Charges Six Individuals in Multimillion-Dollar Fraud Targeting Court-Appointed Criminal Defense Lawyers

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ational Planned Parenthood, Liability in $1.8B Texas Medicaid Fraud Case, Medicaid Fraud Case

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