Stymied by the Obama administration, the state fails to block Medicaid dollars from going to clinics that provide abortions
The federal government told Indiana on Wednesday that it cannot endorse a state law attempting to keep Medicaid dollars away from clinics that perform abortions.
CMS Denies Indiana Abortion Law
Romney's the One to Beat, Dem Insiders Say
U.S. Growth: Slow and Volatile
Centers for Medicare and Medicaid Services Administrator Donald Berwick denied a request to approve a state amendment that would prohibit Medicaid funds from reaching hospitals and clinics, such as Planned Parenthood, that offer abortion services.
Berwick said law stipulates that Medicaid cannot exclude providers based on what services they provide.
"Medicaid programs may not exclude qualified health care providers from providing services that are funded under the program because of a provider's scope of practice," Berwick wrote. "We assume this decision is not unexpected."
He also said the Indiana amendment would restrict beneficiaries' access to family planning care, which is protected under the law.
Last week, Senate Democrats asked the federal government to notify state Medicaid programs that there will be penalties for withholding funds.