Planned Parenthood's Medicaid Fraud Problem

While Planned Parenthood apologists constantly try to present the abortion business as a benefit to the community, PP is under investigation in several areas for Medicaid fraud.  Two years ago Planned Parenthood Gulf Coast director Peter Durkin retired under interesting circumstances, and the El Paso facilities were forced to close back in 2009- also due to...Medicaid fraud.  Now Planned Parenthood Gulf Coast has agreed to pay $1.4 million in the hopes that the latest investigation will go quietly away before abortion champion Wendy Davis launches a bid for governor.  

Good luck with that.

Here's the content of a release from the Texas Alliance for Life:

FOR IMMEDIATE RELEASE:July 25, 2013
AUSTIN, TX -- Planned Parenthood Gulf Coast agreed Wednesday to pay $1.4 million for fraudulently overbilling the taxpayer-funded Medicaid program. The Texas Attorney General Greg Abbott issued a statement explaining that an investigation revealed Planned Parenthood Gulf Coast billed the Texas Medicaid program for services and products that were not medically necessary, never actually rendered, and not covered by the Medicaid program. Investigators also revealed that Planned Parenthood Gulf Coast falsified information on patient records in order to obtain fraudulent reimbursements from the Medicaid program.

This case is believed to have been introduced in federal court by a former Planned Parenthood Gulf Coast employee Karen Reynolds in 2011. According to her complaint Reynolds learned that her employer knowingly engaged in continued violations of federal and state law by implementing policies designed to fraudulently maximize reimbursements from government health care programs such as the Texas Medicaid program.

Another case pending against Planned Parenthood Gulf Coast was first filed by plaintiff Abby Johnson in December, 2011. Johnson managed the Planned Parenthood Gulf Coast abortion facility in Bryan, Texas. According to Johnson's complaint, Planned Parenthood Gulf Coast filed 87,075 or more false, fraudulent and/or ineligible claims from January 1, 2007, to at least October 6, 2009. According to these allegations, Planned Parenthood Gulf Coast could be liable for treble damages close to $600 million.

Johnson publicly referred to the $1.4 million settlement as "simply a slap on the wrist." When asked if she intended to settle Johnson stated, "I have absolutely no intention of settling with my former affiliate. I don't want to settle. I want them to be held accountable."

Texas Medicaid rules permit the Office of Inspector General to exclude entities engaging in Medicaid fraud from being providers. It is not known whether this will be pursued in the case of Planned Parenthood Gulf Coast.