Planned Parenthood no longer able to provide coverage for Medicaid paients

All but one of Planned Parenthood of Indiana’s clinics were closed on Wednesday as employees took an unpaid day off in an emergency cost-saving measure.

The Indianapolis-Georgetown clinic remained open Wednesday, but will be closed on Thursday, while the remaining clinics are open.

“The one-day furlough should allow us to save enough money to keep our doors open during this brief window between now and the expected ruling by July 1,” CEO and President of Planned Parenthood Betty Cockrum said in a statement.

The beleaguered organization has been fighting an Indiana law, HEA 1210, passed May 11 which forbids the state from entering into contracts with an organization that provides abortion services.

However, it was already illegal for state or federal money to go to abortion services. The law cuts off all federal funding provided to the organization that is funneled through the state government, including Medicaid money.

Planned Parenthood had approximately 9,300 Medicaid patients in 2010. HEA 1210 cuts off approximately $2 million in federal funding — about 13 percent of Planned Parenthood’s 2010 budget.

The law provided exceptions to every type of abortion provider except Planned Parenthood.

Planned Parenthood of Indiana is fighting the law in federal court and a decision is expected by July 1.

The U.S. Department of Health and Human Services denied Indiana’s request for Medicaid money because of the new law, which they claim breaks federal Medicaid policy.

Indiana receives more than $4 billion in annual Medicaid funding each year the federal government could withhold.

After a decline in donations, the family planning organization was forced to stop providing services to Medicaid patients June 20. Planned Parenthood had been able to extend service until this point due to donations, despite federal Medicaid funding being cut off May 11.

On Tuesday, the organization also laid off two disease intervention specialists at the Muncie clinic.

These measures were implemented to avoid having to close any clinics across the state until a judge rules on whether or not HEA 1210 will be overturned.

“We know this is a personal hardship for our employees and our patients, and we had so hoped to avoid it,” Cockrum said. “It is, however, in the best interest of our mission and will allow us to avoid center closures and additional temporary reductions in staff until we get a ruling.

“We send our apologies to our patients and to our staff. We remain confident we have a strong case.”

Because of HEA 1210, Planned Parenthood was also denied participation in a state tax deductions program that is designed to encourage citizens to donate to non-profit organizations.

Cockrum indicated that if they do not receive a favorable ruling in the court case, they will begin laying off more employees and closing clinics “in short order.”

Most of the clinics that would be at risk for closure would be in poor urban or rural areas, Planned Parenthood spokesperson, Kate Shepherd, said.

— Zach Ammerman