Planned Parenthood Getting $214,000 in Obamacare Funds Accused of Medicaid Fraud

National   Steven Ertelt   Aug 16, 2013   |   12:46PM    Washington, DC

Planned Parenthood of the Heartland is one of four affiliates of the Planned Parenthood abortion business to have received hundreds of thousands of dollars in funds to promote Obamcare. However, the abortion business faces accusations of massive Medicaid fraud.

As LifeNews reported, three more local affiliates of the Planned Parenthood abortion business are getting hundreds of thousands of dollars in taxpayer funding from the federal government to promote Obamacare. Among the grants listed were $295,604 for Planned Parenthood of Montana; $214,427 for Planned Parenthood of the Heartland; and $145,161 for Planned Parenthood of Northern New England.

Yet, a lawsuit from a former Planned Parenthood abortion clinic manager who sued the abortion giant accusing it of engaging in massive fraudulent activities is currently pending at the appeals court level.

The lawsuit followed a new investigation of Planned Parenthood in Illinois and Planned Parenthood abortion companies in other states having been found to have engaged in overbilling and Medicaid fraud.

Planned Parenthood clinic director Sue Thayer filed the lawsuit against the abortion giant’s Iowa affiliate accusing it of submitting “repeated false, fraudulent, and/or ineligible claims for reimbursements” to Medicaid and failing to meet acceptable standards of medical practice. Alliance Defending Freedom filed the suit for Thayer in March 2011.

The lawsuit claims that Planned Parenthood’s Iowa affiliate submitted “repeated false, fraudulent, and/or ineligible claims for reimbursements” to Medicaid and failed to meet acceptable standards of medical practice.

“Americans deserve to know if their hard-earned tax money is being funneled to groups that are misusing it. That is why we are appealing this case,” said Senior Counsel Michael J. Norton, a former United States Attorney. “No matter what views people have about abortion, everyone can agree that Planned Parenthood should play by the same rules as everyone else.”

Alliance Defending Freedom attorneys filed suit in March 2011 on behalf of Sue Thayer under a federal law that allows “whistleblowers” with inside information to expose fraudulent billing by government contractors. Alliance Defending Freedom has also filed a similar lawsuit against a Texas Planned Parenthood affiliate.

Thayer, former manager of Planned Parenthood’s Storm Lake and LeMars clinics, sued under both the federal and Iowa False Claims acts. The suit alleges that Planned Parenthood knowingly committed Medicaid fraud from 2002 to 2009 by improperly seeking reimbursements from Iowa Medicaid Enterprise and the Iowa Family Planning Network for products and services not legally reimbursable by those programs.

“During my last years working at Planned Parenthood, it became increasingly clear to me that not all of their policies and protocols were completely legal and ethical.  After much thought, I contacted the Alliance Defending Freedom,” Thayer said about the lawsuit. “I believe that it is an important piece in the nationwide effort to shed light on the darkness and deception surrounding America’s largest abortion provider – Planned Parenthood.”

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The lawsuit alleges that Planned Parenthood of Greater Iowa, an affiliate now known as Planned Parenthood of the Heartland, filed nearly one-half million false claims with Medicaid from which Planned Parenthood received and retained nearly $28 million.

The lawsuit explains that, to enhance revenues, Planned Parenthood implemented a “C-Mail” program that automatically mailed a year’s supply of birth control pills to women who had only been seen once at a Planned Parenthood clinic and usually by personnel who were not qualified health care professionals. After that, Planned Parenthood mailed thousands of unrequested birth control pills to those clients.

Planned Parenthood’s cost for a 28-day supply of birth control pills mailed to clients was $2.98, but the Medicaid reimbursement Planned Parenthood received for the pills was $26.32. In some cases, the Postal Service returned the pills to Planned Parenthood. Instead of crediting Medicaid or destroying the returned pills, Planned Parenthood resold the same pills and billed Medicaid twice for the same pills. The suit also claims that Planned Parenthood coerced “voluntary donations” for services and then billed Medicaid for them.