Planned Parenthood’s Stealth Accounting Practices

It is widely understood that Planned Parenthood’s primary funding source, close to $500 million, is derived from Medicaid reimbursements.  Abortion supporters attempt to make the argument that, under the law, Medicaid reimbursements can only be used for “family planning” services.  While that may be the case, it does allow Planned Parenthood and other abortion providers to divert funds otherwise used for family planning toward abortion services.  It’s nothing short of devious accounting.

During the Medicaid expansion debate in Virginia this year, we warned legislators that Medicaid expansion and other grant programs would permit Planned Parenthood and other abortion providers to line their pockets with state funds in order to help them carry out their abortion practice.

Last month, the Virginia League for Planned Parenthood announced that it is planning to open a new abortion center in the East End of Richmond, which is projected to double the number of Richmond clients to 20,000 visits per year.  In fact, the abortion provider has already purchased property and plans to invest upwards of $5 million in its renovation.  The location of the new Planned Parenthood is in one of Richmond’s more impoverished areas, and will seek to exploit and misguide new Medicaid enrollees.  

What gave Planned Parenthood incentive to establish a new abortion center in Richmond you might ask? Simple: Medicaid.  In the Richmond Times Dispatch article announcing the new facility, the CEO of The Virginia League for Planned Parenthood, Paulette McElwain, stated that they were motivated by the General Assembly’s passage of expanded Medicaid coverage for low-income individuals.

In addition to expanded Medicaid, there have been two Planned Parenthood affiliates approved for the LARC pilot program, a two year, $6 million pilot program approved through the budget to provide long-acting reversible contraception (LARCs) to its clients.

While the Medicaid dollars and LARC grants will not fund abortions directly, it will allow Planned Parenthood to redirect non-Medicaid funding streams to support their primary mission – performing abortions.  Money is fungible, and Planned Parenthood has learned how to cleverly use this to skirt federal and state laws in order to use taxpayer dollars to fund abortions.

Some states, most recently South Carolina, are taking direct action to thwart this devious accounting practice.  This month the South Carolina House of Representatives voted to uphold the Governor’s line item veto of a budget measure that would have funneled about $15.8 million in state “family planning” funds to Planned Parenthood and other abortion providers.  Last year the South Carolina Governor Henry McMaster also boldly issued an executive order disqualifying abortion facilities from being Medicaid providers (that executive order has been challenged in court by Planned Parenthood).  Governor McMaster said in a statement: “[t]here are a variety of agencies, clinics, and medical entities in South Carolina that receive taxpayer funding to offer important women's health and family planning services without offering abortions.”

South Carolina has stood up to the powerful abortion industry and its lobbyists to cut off its funding, which ultimately support abortion practices.  It is time for Virginia to do the same, and disqualify any health care clinics that carry out abortions from becoming eligible for Medicaid reimbursements.

As we unwrap Medicaid expansion that was delivered to Virginians through the biennium budget this year, we are now beginning to see some of our predictions related to the abortion industry come to pass.  Nevertheless, we will remain steadfast and diligent in our defense of the unborn and the protection of all women who are being influenced by Planned Parenthood and its abortion cohorts.