U.S. District Judge Matthew Kacsmaryk said Monday that Planned Parenthood will go to trial in a $1.8 billion lawsuit brought against the organization by the state of Texas.
Planned Parenthood will go to trial as Texas has accused the organization of defrauding the state's Medicaid health insurance program, a federal judge ruled Monday. Texas has accused Planned Parenthood of obtaining funds from the state and failing to repay them after it terminated the organization as a provider under its Medicaid insurance programs for low-income people. While both sides favored a ruling without going to trial, U.S.
Planned Parenthood has said the case, which stems from an undercover video released eight years ago that prompted Texas and Louisiana to take action against the organization, could cost the company a whopping $1.8 billion and threaten its ability to operate in Texas. The undercover video footage released in 2015 from inside a Planned Parenthood clinic purported to show staff discussing the sale of fetal tissue. Planned Parenthood has discredited the videos and denied wrongdoing.
Both states accuse Planned Parenthood of defrauding the states by continuing to bill and collect payments from their Medicaid programs after the initial termination decisions, and failing to repay what it received after the terminations – both states kicking the organization off the Medicaid insurance program – were finally allowed to take effect.
Texas banned nearly all abortions following the Supreme Court's 2022 decision overturning the 1973 case that first legalized abortion nationwide, Roe v. Wade. Reuters contributed to this report.
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