Planned Parenthood is facing a lawsuit filed by the state of Texas, which could potentially lead to the organization's closure.
The lawsuit alleges that Planned Parenthood unlawfully accepted Medicaid payments while the state was actively seeking to terminate those funds.
"This baseless case is an active effort to shut down Planned Parenthood health centers," stated Alexis McGill Johnson, President of Planned Parenthood Federation of America, in response to the lawsuit.
The legal battle between Texas and Planned Parenthood dates back to December 2016 when the state initially notified the abortion provider of its intent to terminate Medicaid payments. However, Planned Parenthood took legal action and obtained a federal court ruling in its favor, allowing it to continue receiving Medicaid funds. In 2020, the U.S. Court of Appeals for the Fifth Circuit overturned that ruling, which was subsequently upheld in 2021.
The lawsuit argues that Planned Parenthood pursued a legal appeal rather than a legislative one, asserting that all payments received by the organization after February 1, 2017, were fraudulent. Texas is seeking $17 million in reimbursement for these funds.
In addition to the financial consequences, abortion advocates are expressing concern over the judge assigned to the case, federal Judge Matthew Kacsmaryk. Judge Kacsmaryk previously ruled against the Biden administration in April and issued a stay against the sale of the abortion drug mifepristone.
The potential ramifications for Planned Parenthood extend beyond the reimbursement sought by Texas. Under the federal False Claims Act, the organization could face fines for each allegedly fraudulent payment, potentially amounting to over a billion dollars. Supporters of Planned Parenthood have taken to social media, claiming that the lawsuit could cost the organization up to $1.8 billion.
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