Justice Department Moves to Join Texas Lawsuit Accusing Planned Parenthood of Medicaid Fraud

The Justice Department filed notice Friday night that it will seek to join a years-old Texas lawsuit accusing Planned Parenthood Federation of America and affiliates of violating the False Claims Act by continuing to bill Medicaid after Texas and Louisiana terminated the organization’s eligibility. Outgoing Texas Attorney General Ken Paxton and an anonymous plaintiff brought the case; Texas has sought approximately $1.8 billion in reimbursements, interest, and penalties.

The filing occurred days after Texas voters elected Democrat Nathan Johnson as the next attorney general. Johnson has said he plans to review lawsuits filed during Paxton’s tenure. Planned Parenthood has denied the allegations, arguing that billing continued lawfully while court orders paused the terminations and that it cannot be held liable for advice given to affiliates. The Fifth Circuit previously ruled that an appeal of a district-court decision denying national-group immunity was premature, allowing the case to proceed.

U.S. District Judge Matthew Kacsmaryk, a Trump appointee, is presiding. Planned Parenthood has stated that a loss of the magnitude sought could force closure of operations in Texas. The Justice Department’s intervention gives the federal government a direct role in the matter.