Medicaid and State Government and Government and Health Care & Life Sciences and Health Care & Insurance

Panel hears arguments over Indiana abortion funding

December 15, 2011

A federal agency will reconsider whether Indiana violated federal law when it decided to cut off Medicaid funding to Planned Parenthood and other abortion providers.

Solicitor General Tom Fisher on Thursday asked the Centers for Medicare and Medicaid Services to overturn its June 1 ruling that found changes in Indiana's Medicaid plan unacceptable.

The state says federal law allows it to set qualifications for providers, but CMS determined a new Indiana law denied clients freedom of choice of providers.

The Medicaid plan change came after the Legislature passed a law prohibiting non-hospital abortion providers from receiving Medicaid funds. Planned Parenthood sued to overturn the law and won a federal temporary injunction in June barring it from taking effect. The state has argued the dispute should be decided administratively by CMS.

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