Planned Parenthood claimed immunity from the actions of its attorneys, but was rejected by a U.S. district judge.
A federal lawsuit accusing Planned Parenthood of unlawfully billing Medicaid will continue after a judge rejected the abortion provider’s claim of immunity for the actions of its attorneys.
The state of Texas and an anonymous whistleblower are seeking more than $1.8 billion in penalties.
Background
In 2021, an anonymous whistleblower filed a federal lawsuit accusing the Planned Parenthood Federation of America (PPFA) and three Texas affiliates of defrauding the state’s Medicaid system. Attorney General Ken Paxton later joined the suit.
Specifically, the whistleblower alleged that after three Planned Parenthood affiliates were terminated from Medicaid, they masterminded an in-court and out-of-court scheme to maximize their ability to continue submitting Medicaid claims—in violation of the False Claims Act.
Planned Parenthood of Greater Texas, Planned Parenthood Gulf Coast, and Planned Parenthood South Texas, allegedly received roughly $10 million in Medicaid funding during the disputed period. The False Claims Act allows for triple the damages plus statutory penalties and inflation—escalating the total potential judgement to $1.8 billion.
PPFA called the lawsuit a “baseless” political attack.
“Planned Parenthood organizations are nonprofits that follow the law and provide essential, life-saving health care to their patients,” wrote the abortion provider.
U.S....
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