Governor Mitch Daniels signed the law, which would cut off anywhere from $2 million to $3 million the Planned Parenthood abortion business receives in federal funds via the Indiana government through Medicaid.
Daniels said that “any organization affected by this provision can resume receiving taxpayer dollars immediately by ceasing or separating its operations that perform abortions.”
However,the Obama administration has told the state it can’t implement the new law,with Centers for Medicare and Medicaid Services Administrator Donald Berwick denying a request to deny funds saying the federal Medicaid law stipulates that states can’t exclude providers based on the services they provide.
National Journal. “We assume this decision is not unexpected.”
Berwick also said the law makes it so states can’t prohibit access to family planning,which is provided under federal law. His department released a memo advising states that they can’t exclude abortion providers from receiving taxpayer funds via Medicaid.
“Medicaid programs may not exclude qualified health care providers — whether an individual provider,a physician group,an outpatient clinic or a hospital — from providing services under the program because they separately provide abortion services,” Center for Medicaid Director Cindy Mann wrote in the memo.