Court Rules Against Planned Parenthood, Medicaid Fraud May Cost Abortion Biz $1.8 Billion

A federal appeals court on Wednesday dismissed Planned Parenthood’s bid to stop a major Medicaid fraud lawsuit, returning the case to trial court where the organization faces potential damages approaching $2 billion.

The full U.S. Court of Appeals for the Fifth Circuit, sitting en banc, ruled that it lacked jurisdiction to hear Planned Parenthood Federation of America’s interlocutory appeal.

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The decision sends the case back to the Northern District of Texas, where Judge Matthew Kacsmaryk had earlier rejected the group’s claim that its attorneys were immune from the suit.

The lawsuit, brought by whistleblower “Alex Doe” under the False Claims Act, alleges that three Planned Parenthood affiliates continued submitting Medicaid bills after Texas and Louisiana terminated their eligibility in 2015. The decisions by those states followed undercover videos from the Center for Medical Progress that showed Planned Parenthood officials discussing harvesting the body parts of aborted babies to sell.

Despite the states’ actions and ongoing legal challenges, the Planned Parenthood affiliates allegedly kept billing the taxpayer-funded program for years.

Under the False Claims Act, a successful case can require repayment of three times the amount improperly obtained plus additional penalties. Estimates place potential liability at approximately $1.8 billion to nearly $2 billion.

The full Fifth Circuit vacated an earlier three-judge panel ruling that had favored Planned Parenthood on the immunity issue. In its August 12 opinion, the en banc court held that the collateral-order doctrine did not permit an immediate appeal, finding that deciding the immunity question would not conclusively resolve a separable legal issue that meaningfully advances the case.

The fraud claims now proceed in district court. If the whistleblower prevails, Planned Parenthood could be ordered to repay years of Medicaid reimbursements collected after the states deemed the affiliates ineligible.

“The nation’s largest abortion business felt so entitled to taxpayer money, it spent years billing Medicaid after being disqualified by Texas and Louisiana — a direct result of their disregard for human life exposed by David Daleiden’s undercover videos showing their role in the sale of baby body parts,” Katie Glenn Daniel, director of legal affairs for Susan B. Anthony Pro-Life America, said previously.