Bill Prohibits Planned Parenthood From Receiving Medicaid Payments for Services Provided
Vermont Business Magazine Today, the U.S. House of Representatives passed a budget reconciliation that included a provision to “defund” Planned Parenthood. The bill prohibits Planned Parenthood from receiving payments for the services they provide to patients on the Medicaid program.
Planned Parenthood of Northern New England (PPNNE) is calling this bill a backdoor abortion ban. The Hyde Amendment already bars federal Medicaid from covering abortion services, except in very rare instances. Now, Planned Parenthood’s non-abortion health services – such as cancer screenings, birth control, and STI testing – are also no longer eligible for reimbursement under Medicaid.
“Our patients’ lives matter and the politicians who voted in support of taking away health care to give billionaires tax cuts will have to answer to them,” said Nicole Clegg, CEO of Planned Parenthood of Northern New England (PPNNE). “Stripping essential health care from the most vulnerable people in our communities is cruel. Without access to the vital health care provided by Planned Parenthood to patients on Medicaid, cancers will go undetected, STIs will be left untreated, and unplanned pregnancies will rise. People will suffer.
For years, anti-abortion lawmakers have tried to shut down Planned Parenthood through any means necessary. They have once again shown us that they are willing to do whatever it takes to achieve that goal, including jeopardizing the health of 1.1 million people nationwide by passing this bill.
This is not over. Planned Parenthood will do everything in our power to keep fighting for our patients and keep our doors open.”
Planned Parenthood of Northern New England will host a press conference next Wednesday to discuss the immediate and future impacts of the reconciliation bill passed by Congress.
For PPNNE, this Medicaid defund, coupled with the freezing of their family planning funds in New Hampshire and Maine by the Trump Administration, creates a $5 million annual shortfall.
The removal of Planned Parenthood from the Medicaid program is set to begin on October 1, 2025, and will last for at least one year.
Impact by the Numbers
- [VT] In the 2024 fiscal year, 24 percent of the nearly 16,000 patients who received care at PPNNE’s health centers in Vermont were on the Medicaid program. PPNNE’s health centers in Vermont provided care for these patients for more than 7,400 visits.
- The Congressional Budget Office’s new assessment estimates “defunding” Planned Parenthood will cost taxpayers $52 million over the next ten years.
- A recent study by the Guttmacher Institute revealed that no other provider can step in to fill the gap for patients who will lose care if Planned Parenthood health centers are forced to close. The report states that federally qualified health centers and other publicly supported clinics in Vermont and New Hampshire would have to increase their caseloads by 100% to provide care to the patients currently served by Planned Parenthood.
- 200 Planned Parenthood health centers in 24 states are at risk of closure, and more than 1.1 million patients could lose access to care.
- More than 90% of the health centers at risk of closure are in states where abortion is still legal. The number of Planned Parenthood health centers in states with abortion access could be cut in half.
About Medicaid
- Medicaid is a governmental program that provides health insurance coverage to people with low incomes.
- Nearly 72 million people nationwide – or approximately 1 in 5 – were enrolled in Medicaid as of December 2024.
- Planned Parenthood doesn’t get a blank check from the federal government. Like any other health care provider, they are reimbursed for services provided at health centers to patients who use Medicaid or other government-funded programs.
Planned Parenthood of Northern New England is the largest provider of sexual and reproductive health care across Maine, New Hampshire, and Vermont. In FY24, PPNNE provided care to more than 32,000 patients for more than 47,000 visits. There are 14 health centers across the region, including 6 in Vermont. PPNNE was named a 2021 and 2022 Guardian of Excellence Award® winner by Press Ganey, the national leader in health care consumer and workforce engagement. Press Ganey recognizes PPNNE as a top-performing health care organization, achieving the 95th percentile or above for performance in patient experience.
Patients on the Medicaid program can continue to access their health care through PPNNE’s 14 health centers and telehealth program. Patients can book an appointment at www.ppnne.org.
Planned Parenthood Vermont Action Fund is an independent, nonpartisan, not-for-profit membership organization formed as the advocacy and political arm of Planned Parenthood of Northern New England in Vermont.
Source: 7.3.2025. (Colchester, VT) — Planned Parenthood of Northern New England. www.ppnne.org
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