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Tuesday, May 24, 2011

Ind. Law - More on "Murky times for Planned Parenthood: Local clinic joins others in state wary of new law’s consequences"

Murky indeed. Updating this ILB entry from May 15th, part of this list of earlier ILB entries, Robert Pear of the NY Times reported May 22nd in a long and comprehensive story that begins:

WASHINGTON — The Obama administration is raising serious objections to a new Indiana law that cuts off state and federal money for Planned Parenthood clinics providing health care to low-income women on Medicaid.

The objections set the stage for a clash between the White House and Gov. Mitch Daniels, a Republican, over an issue that ignites passions in both parties.

The changes in Indiana are subject to federal review and approval, and administration officials have made it clear they will not approve the changes in the form adopted by the state.

Federal officials have 90 days to act but may feel pressure to act sooner because Indiana is already enforcing its law, which took effect on May 10, and because legislators in other states are working on similar measures.

If a state Medicaid program is not in compliance with federal law and regulations, federal officials can take corrective action, including “the total or partial withholding” of federal Medicaid money. The mere threat of such a penalty is often enough to get states to comply. Actually imposing the penalty would, in many cases, hurt the very people whom Medicaid is intended to help.

The AP's Ken Kusmer had a companion story May 23rd. Here are some quotes from the long story:
The U.S. Centers for Medicaid and Medicare Services issued a statement saying it was reviewing Indiana's law and situations in other states threatening to withhold funds from abortion providers.

"Federal law prohibits federal Medicaid dollars from being spent on abortion services. Medicaid does not allow states to stop beneficiaries from getting care they need - like cancer screenings and preventive care - because their provider offers certain other services," the agency said. "We are reviewing this particular situation and situations in other states."

The statement, given to The Associated Press on Monday, was first reported by The New York Times.

The review appeared to pose the latest challenge to the contentious law signed by Gov. Mitch Daniels on May 10. The law makes Indiana the first state to deny Medicaid funds for general health services such as breast exams and Pap smears and affects more than $1 million in Medicaid funding for Planned Parenthood.

Planned Parenthood of Indiana President Betty Cockrum welcomed the federal review, saying Monday that it might provide a second avenue of relief if a federal judge decides not to grant the organization's request to block the law. Planned Parenthood argues in a federal lawsuit that statute is unconstitutional.

Cockrum also noted that the secretary of the Indiana Family and Social Services Administration, which oversees Medicaid in Indiana, said last month that the law could threaten $4 million in federal funds that help various family-planning groups in Indiana.

Indiana Attorney General Greg Zoeller issued a statement Monday saying his office would "continue to diligently represent" the state against Planned Parenthood's lawsuit. A hearing is set for June 6 before U.S. District Judge Tanya Walton Pratt, who has said she would rule by July 1.

"The State's position is that Planned Parenthood could set up separate corporate entities to provide abortions and Medicaid-eligible family planning services such that tax dollars do not wind up subsidizing abortions indirectly," Zoeller said.

Cockrum has said establishing separate entities would be "logistically challenging" and there was no guarantee that future Legislatures would not try to shut them down, too.

The state's non-partisan Legislative Services Agency also raised questions about the law. In a recent analysis, it noted that the Indiana Family and Social Services Administration said federal law requires state Medicaid plans "to provide any eligible individual medical assistance and that they can obtain such assistance from any institution, agency, community pharmacy, or person, qualified to perform the service(s) required."

Here is the LSA fiscal note for HEA 1210, as revised May 12, 2011.

Posted by Marcia Oddi on May 24, 2011 09:47 AM
Posted to Indiana Law