In the final hours of December 31, 2012, congress and the democrats agreed on a deal in the White House that averted the fiscal cliff in the US and saved the economy from slipping away into darkness. But for how long?

According to Forbes magazine, income tax rates up to $450,000 (for married couples) will be subject to older tax rates, but income above $450,000 will taxed at 39.6%. Tax-rates on long term capital gains and dividends will be hiked from 15 percent to 20 percent only for those taxpayers above; for everybody else it will be the same 15 percent.

Further, according to Forbes, the deal is composed of an extension of exemption on estate taxes at $500,000, but rates have been increased to 40 percent from 35 percent.

It seems rather uncomfortable to say that President Obama achieved victory on tax code debate since democrats were pushing top tax rates for income just above $250,000; nevertheless, tax revenues have been made somewhat stronger.

As reported in my last article, updating tax rates for the rich may strengthen the revenue part of the budget. Perhaps it is a good sign, but the deal barely mentions anything about chronic deficits.

Perhaps the most pivotal portion of budget is spending. Because spending and taxes are branches of the same tree, and there is a threat that the tree might lean to one side if the other branch grows too heavy.

According to the Heritage Foundation report, “Federal spending by the Number 2012,” federal entitlements are driving this spending growth, increased from less than half of the total federal outlays some 20 years back to nearly 62 percent in 2012.

Further report says that three major programs (Medicare, Medicaid, and Social Security) eat up about 44 percent of the budget. Other programs such as anti-poverty program increased by 49 percent in the last 10 years, food stamps tripled since 2002, and housing assistance rose by 48 percent since 2002.

Debt Facts

The year 2012 marked $1.1 Trillion of deficits, the fourth consecutive year the deficit exceeded 1 trillion.

The 2012 Deficit. was estimated to be 7.3 percent of the GDP.

Over 2 decades, spending grew 71 percent.

In 2012, spending on entitlements was nearly 62 percent of total spending, while defense expenditure was 18.7 of the budget.

The US economy is drifting towards deeper deficits for two principle reasons: a dramatic shift in spending on the outset of recession, and a large chunk of financial resources diverted towards a host of social programs.

What’s happening in the US economy can be summed up as a fiscal fiasco. It is also economic uncertainty and political confusion over the fate of the tax code, massive spending and mountainous federal deficits, since this deal focused extensively on one side of the budget.

Ironically, what remains to be the most awful aspect of the deal is the extension of rapid spending cuts, generally known as sequester. The sequester problem should have been solved under this deal.

According to the Christian Science Monitor, ‘sequester’ is composed of mandatory spending cuts, hammering down $600 billion in defense and $600 billion in domestic programs, which have been extended to March 1, 2013.

Are we going to experience the same kind of frustration and confusion again in March as we did prior to this deal? Fiscal deficits are a jinx to growth and the whole of the economy because it forces us to cease off-spending.

But again a question arises whether welfare policies sometimes ask for more than what the economy can produce? Is this too much welfarism?

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During this electoral campaign, Medicare has been in the center of the political debate. The Democrat ticket (Obama-Biden) is accusing the Republican ticket (Romney-Ryan) of planning to end Medicare as we know it, and Republicans are accusing Democrats of taking money out of Medicare to fund Obamacare.

According to a new ad released by Romney’s campaign, the Obama administration has cut $716 billion from Medicare to pay for Obamacare. The ad tries to convince voters that the money they have paid to guarantee their healthcare goes to a massive new government program that is not for them. Romney and Ryan are trying to convince the public that they are the ones that would save Medicare benefits from Obama’s cuts; if they win, Medicare benefits will be assured for future generations.

On the other hand, President Obama, during a speech in Iowa, said the Republicans are being dishonest about his Medicare plan. Obama assured the public that he has strengthened Medicare, and that his reforms have saved millions of elderly people millions of dollars on their prescription drugs. The president added that he has made reforms that will not touch Medicare benefits and stated that Romney and Ryan want to turn Medicare into a voucher system.

With this method, seniors would not have health care guaranteed; instead, they would receive a voucher to buy private insurance. According to Obama, this would make seniors pay extra money every year.

Romney’s campaign has accused President Obama of failing to fix Medicare, which they claim is broken. The Republicans claim Obama promised he would fix Medicare in his first term in office, and he has failed.

A NY Times Editorial on August 15 defends President Obama and claims that the Republican’s attacks on Obama’s plans for Medicare are getting more “heated and inaccurate.” It explains that the Republicans are criticizing Obama for taking $716 billion out of Medicare to a new government program that does not benefit the seniors, but the Republicans are not saying that the “the budget resolutions crafted by Paul Ryan and approved by the Republican-controlled House retained virtually the same cut in Medicare.”

The Editorial also explains that “the Republicans imply that the $716 billion in cuts will harm older Americans, but almost none of the savings come from reducing the benefits available for people already on Medicare.”

After all the controversy, a legitimate question would be: what is Medicare? Basically, it is a Federal insurance program that covers the medical services and hospitalizations of some elderly and disabled people. This is not to be confused with Medicaid, which was created to provide medical care to those in poverty.

The health plan is divided into two main parts and two additional ones. The first part, Hospital Insurance, helps to pay hospital stays and other additional health services such as physical therapy. This first part is available for the people  almost every time without having to pay a monthly premium, because they have already paid it through their payroll deductions.

The second part of Medicare, Supplementary Medical Insurance, covers other additional services like blood transfusions or renal dialysis. This part requires a monthly premium, which currently is $99.90 (higher-income consumers have to pay more).

The third part of Medicare has the advantage that it allows the users to design their own medical plan according to their needs. These plans may enlist some private insurance companies to provide some of the services.

In 2006, Medicare expanded to a fourth part of the plan, which covers prescription drugs. This last part, administered by a private insurance company, offers different plans and prices depending on the plan you choose and of the drugs you use. It  requires a payment of a deductible and a premium.

To be eligible for Medicare you have to be at least 65 years old, less than 65 but disabled, or have permanent kidney failure that requires a dialysis or a transplant. The other requirements are that you must be a citizen or a permanent legal US resident for more than five continuous years, and have ten years of contributing into the system.

Medicare basically funds from the payroll taxes and the Self-Employment Contributions Act. Any additional Medicare funding comes from premiums, deductibles, etc.

A key aspect to consider is that according to a new Quinnipiac University/New York Times/CBS News poll, Medicare is the third-most crucial issue to likely voters in Florida, Ohio and Wisconsin, just behind the economy and healthcare.

The future of this program could be decided with this election. Now it is time for the Republicans to convince the voters that, under Obama, Medicare would go bankrupt. Or, the Democrats must convince the voters that if Romney wins, Medicare would turn into a voucher system.

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Ann Arbor, U.S.A. – The Center for Healthcare Research & Transformation (CHRT) released a policy paper that shows how the Patient Protection and Affordable Care Act (ACA) in 2014 will streamline eligibility categories and may also help between 400,000 and 500,000 citizens to become newly eligible for Medicaid coverage. Currently, there are at least 40 different ways — each with varying eligibility requirements—to qualify for Medicaid in Michigan.

Whether or not Michigan decides to expand coverage for Medicaid, the paper shows that enrolling in Medicaid and maintaining that coverage should become easier for Michigan residents starting in 2014, when the ACA requires states to eliminate asset tests — a review of an individual’s assets to ensure they do not exceed certain limits—and consolidate existing eligibility categories.

“Many changes were included in the ACA that go beyond the Medicaid expansion. These changes were designed to make enrollment policies and processes simpler for those who have existing Medicaid coverage, and enable those newly eligible to go through an easier enrollment process than exists today. These enrollment changes alone should help ensure that more people have access to the affordable care when they need it,” says Marianne Udow-Phillips, CHRT’s director.

Under current federal rules, the Medicaid program provides coverage to those at or below a certain income level who also fit within certain categories, and states can opt to expand Medicaid eligibility.

In 2014, all existing eligibility categories—mandated or optional—will be simplified and consolidated into three categories:

• Parents and caretaker relatives of dependent children under 19.
• Pregnant women.
• Infants and children under age 19.

Additionally, those who receive Supplemental Security Income (SSI) or qualify as “medically needy” will remain Medicaid eligible to avoid gaps in coverage.

For states that opt to expand Medicaid, all non-elderly citizens and eligible resident immigrants with incomes at or below 138 percent of the federal poverty level will become Medicaid eligible, even if they are not categorically eligible.

While the Medicaid expansion is optional for states, streamlining eligibility criteria and simplifying enrollment processes is still required.

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Chicago, U.S.A. – Medicaid cuts being considered in Springfield would cost thousands of jobs and threaten care at nursing homes across the state, according to nursing home administrators, health care leaders and elected officials who rallied at the Thompson Center in Chicago. The event was organized by the Health Care Council of Illinois (HCCI), which represents more than 500 nursing homes and rehabilitation facilities across the state of Illinois.

“Nursing homes are the 10th largest employer in the state,” Pat Comstock, HCCI Executive Director, told the crowd. “We employ 100,000 workers who pay their taxes and support their families. At a time when 70 cents of every dollar a nursing home spends is for staff wages, these Medicaid cuts could cause thousands of layoffs across Illinois.”

Legislators are considering Governor Quinn’s proposal to slash Medicaid spending by $2.7 billion. The proposed cuts to nursing homes could drastically jeopardize the quality of care for the more than 50,000 people residing in Illinois nursing homes who pay with Medicaid. These cuts put nursing homes at risk for closing, especially some Chicago nursing homes where Medicaid recipients make up more than 90 percent of the resident population.

“We’ve been traveling Illinois for the past few weeks, making 16 stops, calling on lawmakers and Governor Quinn to step up to the plate for nursing home residents,” Comstock continued. She invoked the baseball metaphor in calling upon the General Assembly to support nursing homes.

“The State of Illinois is dead last in the nation for the amount of Medicaid funds the state gives nursing homes. That’s strike one,” Comstock said. “The state is more than $600 million and eight months delinquent in paying most nursing homes. That’s strike two. Illinois must not strike out when it comes to our most frail, vulnerable residents.”

In addition to the multi-city tour and rally, nursing home staff from across Illinois have been visiting Springfield, meeting with legislators and urging them to give nursing home residents top priority for Medicaid funding.

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Washington, U.S.A. – Following Wednesday’s hearing ‘Is Government Adequately Protecting Taxpayers from Medicaid Fraud?’, the Partnership for Quality Home Healthcare praised the House Committee on Oversight and Government Reform for calling attention to the impact Medicaid fraud is having on beneficiaries and taxpayers alike.

The home healthcare community supports tough measures that target and prevent fraud and abuse. In order to strengthen program integrity, home healthcare leaders have developed reform proposals that would prevent payment of aberrant claims and enhance conditions of participation and claims validation processes. Policy solutions that target fraud and abuse can strengthen state Medicaid programs to more effectively ensure that valuable taxpayer dollars are not falling into the hands of fraudulent individuals.

“Medicaid fraud that could amount to billions of dollars per year is a serious problem that must be remedied,” said Senator John Breaux, senior counsel to the Partnership for Quality Home Healthcare. “Wednesday’s hearing underscores the fact that we must do more to protect America’s 50 million Medicaid beneficiaries and the taxpayers who fund this essential healthcare benefit.”

Home healthcare plays a vital role in delivering clinically advanced healthcare services to Medicaid patients requiring treatment for illnesses related to acute, chronic or rehabilitative needs.  Highly trained healthcare professionals and clinicians are helping patients effectively manage chronic diseases with care that was once only available in more costly settings.

Home healthcare services today include cardiac and pulmonary care, physical therapy and rehabilitation, wound care, intravenous (IV) therapies and a myriad of other advanced care services, which are distinctly different from personal care services incorrectly associated with skilled home healthcare.

“Medicaid fraud and abuse must not be tolerated,” added Breaux. “Solutions are urgently needed to ensure we are taking all possible steps to protect beneficiaries and taxpayers alike, which means fighting Medicaid fraud with tough reforms like those crafted by the home healthcare community.”

The Partnership for Quality Home Healthcare was established in 2010 to assist government officials in ensuring access to quality home health services for all Americans. Representing more than 1,500 community- and hospital-based home health agencies nationwide, the Partnership is dedicated to developing innovative reforms to improve the program integrity, quality, and efficiency of home healthcare for our nation’s seniors.  To learn more, visit www.homehealth4america.org .

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More than 18,000 emergency patients sick enough to need hospitalization would have been denied coverage of emergency care had they been Medicaid patients living in Washington State. However, since these patients live in Oregon, they were examined in the emergency department and then hospitalized.

An additional 12 percent of patients who needed emergency department services would have been denied emergency care in Washington State, and 33 percent would have needed primary care within 12 hours.

“The Washington State Medicaid plan is flawed because it assumes that physicians know the final diagnosis when a patient walks in the door,” said Robert A. Lowe, MD, MPH, professor in the Department of Medical Informatics and Clinical Epidemiology at Oregon Health and Science University. ”But many patients come in with minor symptoms that turn out to be serious medical conditions.”

Dr. Lowe analyzed over 2.7 million emergency visits in Oregon from 2001 to 2005.  He applied the same research tool that Washington State used to develop a list of non-urgent diagnoses.

“Washington State’s proposed approach is not consistent with what research has taught us about emergency department use,” said Lowe. “This research tool was never designed to be used for triage or as a mechanism to determine whether emergency use is appropriate for required reimbursement by a health plan. This attempt to  would put patients at substantial risk.”

The Washington State plan also is in violation of the federal “prudent layperson standard,” according to the American College of Emergency Physicians (ACEP). This standard was codified into the national health care reform law, the Affordable Care Act, in 2010 and was included in the Medicare Balanced Budget Act of 1997.

Other states, including California, Iowa, Florida, Illinois, New Hampshire and Tennessee have been seeking to cut back on Medicaid because of the financial crisis — but at a time when more people are needing Medicaid because they have lost their jobs and health insurance.

“No patient should ever be in the position of having to diagnose himself,” said Dr. David Seaberg, president of ACEP.  “Physicians also often can’t make a diagnosis without running tests. For example, we can’t rule out a fracture without doing an X-ray: If a patient comes into an emergency department with what might be a broken bone, but it turns out they had a severe sprain, then the health plan still should cover the visit.”

The state Medicaid office in Washington State has developed a list of more than 500 diagnoses, without medical input from physicians in the state, it will not pay for because it deems them “nonurgent” for Medicaid emergency patients.  These include genital burns, acute bronchitis, and every kind of sprain, which can only be diagnosed after an X-ray has ruled out a broken bone.

In addition to Medicaid patients, this ruling will affect thousands of Medicare patients who are also Medicaid beneficiaries in the state. This especially affects Medicaid expansion enrollees who are ages 65 and older — one in five of them need hospitalization when they come to the emergency department.

If a patient gets into a car accident, and goes to the emergency department because their leg hurts so bad they cannot walk, they must have an x-ray to make sure they have not broken their leg,” said Dr. Seaberg. “If that x-ray is negative, Medicaid will not pay for the cost of that test or their ED visit. We use tests to rule-out serious injury and there is no way for a patient with no medical training to predict the outcomes of those tests, and it is dangerous to expect them to do so.”

According to the Washington State Health Care Authority, $98 million of the Medicaid dollars are spent in the state. About 1.5 percent of that funding is spent on emergency care, according to the Washington College of Emergency Physicians. To suggest that 35 percent of visits are non-emergent does not align with the national data of 8 percent from the Centers for Disease Control and Prevention.

“Perhaps one of the most concerning things about the plan is that it seeks to control spending — and deal with the lack of available alternative care settings — at the expense of the patient,” said Renee Hsia, MD, MSc, of the University of California (San Francisco), who has conducted numerous studies on evaluating emergency department use in several states and nationwide.

“The emergency department is the first resort for patients, and also the last resort. If there are no alternatives for people to get medical care, how can you deny them coverage for a urinary tract infection or for a complication from Alzheimer’s?”

ACEP is the national medical specialty society representing emergency medicine. ACEP is committed to advancing emergency care through continuing education, research and public education.

Headquartered in Dallas, Texas, ACEP has 53 chapters representing each state, as well as Puerto Rico and the District of Columbia. A Government Services Chapter represents emergency physicians employed by military branches and other government agencies.

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The Federal Trade Commission issued a complaint to block Omnicare’s hostile acquisition of rival long-term care pharmacy provider PharMerica Corporation, alleging that the combination of the two largest U.S. long-term care pharmacies would harm competition and enable Omnicare to raise the price of drugs for Medicare Part D consumers and others.

In its complaint, the FTC charges that a deal combining Omnicare and PharMerica would significantly increase Omnicare’s already substantial bargaining leverage by dramatically increasing the number of skilled nursing facilities, known as SNFs, that receive long-term care pharmacy services from the company.  Due to its substantial market share, the FTC alleges that the combined firm likely would be a “must have” for Medicare Part D prescription drug plans, which are responsible for providing subsidized prescription drug benefit coverage for most SNF residents and other Medicare beneficiaries.

According to the Centers for Medicare & Medicaid Services (CMS) of the Department of Health and Human Services, the proposed acquisition “appears likely to result in higher reimbursement rates . . . and thereby to increase the cost to CMS (and therefore the U.S. government and U.S. taxpayers) as well as any individuals who pay out-of-pocket costs in connection with such services.”

“If Omnicare is allowed to purchase its biggest and only national competitor, it will diminish competition and raise health care costs – leaving taxpayers and patients to foot the bill,” said Richard Feinstein, Director of the FTC’s Bureau of Competition.  “The Bureau will continue to be vigilant in our efforts to prevent these sorts of anticompetitive deals.”

The FTC’s administrative complaint is part of the agency’s ongoing efforts to maintain competition in the U.S. health care sector, which benefits consumers by keeping prices low and quality and choice of products and services high.  This year, more than 1.6 million Part D Medicare beneficiaries are expected to require long-term care while living in an SNF, and about 1.1 billion prescriptions per year are processed under Part D on behalf of approximately 29 million beneficiaries.

Long-term Care Pharmacies.  Unlike traditional retail pharmacies, long-term care pharmacies do not provide medications directly to “walk-in” consumers from nearby homes.  Instead, long-term pharmacies work with SNFs and other institutional providers to arrange for the delivery and administration of prescription medications to the SNF’s residents.  Most SNF residents need help with the ordering, delivery, and administration of their drugs, and a majority of them get prescription drug coverage from a Part D prescription drug plan.

To protect this fragile population and ensure they receive the Part D benefits they are entitled to, CMS requires Part D plans to provide SNF residents with “convenient access” to a network of long-term care pharmacies, such as Omnicare and PharMerica.  This ensures that SNF residents can get their prescription drugs from a long-term care pharmacy that contracts with the residents’ chosen Part D health plan.  Health plans that cannot provide their beneficiaries with “convenient access” to long-term care pharmacies risk being barred from offering Medicare Part D health plans.

Omnicare, headquartered in Covington, Kentucky, owns and operates approximately 204 long-term care pharmacies in 44 states.  In 2010, Omnicare had revenues totaling about $6.1 billion.  PharMerica, headquartered in Louisville, Kentucky, owns and operates approximately 97 long-term pharmacies in 43 states.  In 2010, PharMerica had revenues of approximately $1.8 billion.

The FTC’s Complaint.  According to the FTC’s complaint, Omnicare’s proposed acquisition of PharMerica, the second-largest long-term care pharmacy in the United States, would be illegal and in violation of Section 5 of the FTC Act and Section 7 of the Clayton Act.  The acquisition would combine the largest and only two national long-term care pharmacies in the country.  The FTC alleges that the combined firm would serve approximately 57 percent of all licensed SNF beds in the United States.

Under the Merger Guidelines used by the FTC and Department of Justice, a transaction that leads to that much market concentration would be presumed illegal.  After the acquisition, the merged firm’s only competition for inclusion in Part D plans’ long-term care pharmacy networks would come from small, regional and local long-term care pharmacies, none of which currently operates in more than a few states.

The FTC charges that, even before the transaction, Omnicare has been able to use its size to exert bargaining leverage over Part D health plans, by threatening to terminate contracts if its terms are not met.  A firm that combines the largest and second-largest long-term care pharmacies in the country would have the unique ability to exert even greater bargaining power to raise the price of drugs to Part D health plans.

Due to its substantial market share, the combined firm likely would be a “must have” for Part D health plans, the FTC contends.  Losing contracts with a combined Omnicare/PharMerica would put the Part D health plans at serious risk of failing to meet CMS’s “convenient access” standard.  This increased risk would provide the combined firm with an anticompetitive advantage in negotiating prices it charges Part D health plans for long-term care pharmacy services.

The Commission vote to issue the administrative complaint against Omnicare was 3-1, with Commissioner J. Thomas Rosch voting no.  The case will be heard before an administrative law judge at the FTC in June 2012.

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Pointing to a study he delivered at a recent (Congressional Health Care Caucus), Phil Lebherz, Founder and Executive Director of the Foundation for Health Coverage Education (FHCE), has called upon Congress and the Obama administration to make 2012 a watershed year for adopting a “Point-of-Care” approach with Medicaid’s administrative program in an effort to save as much as $56 billion in administrative costs.

The costs being targeted are derived from complicated and duplicative steps that keep government administrative costs high and prevent qualified Medicaid recipients from seeking needed care.  Delayed treatment often results in higher overall costs, as patients are treated in hospital emergency rooms with higher incidence of requiring surgery and expensive intensive care services.

“If we continue to run government’s biggest program – Medicaid utilizing the program with 1980s technology, we will be out of money before we reach 2014,” said Lebherz.

In his testimony before the Congressional forum, Lebherz laid out the reasoning behind changing Medicaid from a complicated enrollment system to a “point-of-care” program by describing the current holes. The proposed (Point-of-Care Eligibility) system would target a large segment of the population who are eligible for Medicaid, yet are not enrolled, and access their care in hospitals’ Emergency Rooms. With these patients, the hospital is often left with unpaid bills that should be turned into Medicaid or another liable public entity.

The solution of moving to a Point-of-Care concept was created following (Onsite Study) conducted at four Emergency Rooms in San Diego, California in 2011. Over a period of a year, Sharp Healthcare asked 20,000 uninsured patients FHCE’s Eligibility Quiz, and 80.2% were found eligible for free or low-cost public health coverage.

A previous analysis of Medicaid numbers, detailed in this 2011 (Health Affairs article), demonstrates that a “point-of-care” system could solve the uninsured problem for an estimated 17 million Americans and trim billions of dollars from the government budget.

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Republican and Democratic lawmakers have been engaged in intensive negotiations for weeks to figure out how to lift the $14.3 trillion debt limit but a devastating default looms as the two parties have yet to reach agreement. President Barack Obama addressed the nation with his frustration over the deadlock: “Once again, the economy will be held captive unless they [Republican lawmakers] get their way. This is no way to run the greatest country on earth.”

“Every day that goes by without a deal will see investors become a bit more defensive,” said Omer Esiner, chief market analyst at Commenwealth Foreign Exchange in Washington to Reuters. The stalemate has shook the American position in global markets and experts say that failure to reduce the government deficit by $4 trillion over the next 10 years will downgrade the United States.

President Obama said in a televised address on Monday “I have told leaders of both parties that they must come up with a fair compromise in the next few days that can pass both houses of Congress – a compromise I can sign. And I am confident we can reach this compromise.” Leaders of both parties have insisted that they will not allow the United States to default but so far, demands from both sides have been irreconcilable.

Republican lawmakers say the lift of the debt ceiling must be accompanied by even larger reduction in spending, reflecting the Tea Party line to shrink government. Meanwhile, the Democrats want to shield Medicare and Medicaid to secure old and poor Americans — they want any cuts in the healthcare system to be balanced by changes in the U.S. tax code, something that Republicans in the House of Representatives have staunchly refused.

Because of the division between Republican control in the House and Democratic sway over the Senate, it seems unlikely that their competing plans will win bipartisan support by August 2, when the US ‘runs out of cash to pay its bills’.

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The NBC “Parks and Recreation” star Amy Poehler has proudly endorsed Planned Parenthood on Monday. Amy Poehler wrote a fundraising email for the non-profit organization is featured on the Planned Parenthood homepage. Poehler is defending the woman’s health care center from Republican attacks. Four states have passed legislation to de-fund the organization.

“You know who is awesome? Cecile Richards. She’s the president of Planned Parenthood Federation of America,” Poehler says. “Every single doctor and nurse and receptionist and volunteer who shows up at a Planned Parenthood health center to make sure that every person who walks through their door gets the care they need,” Amy wrote in her email.

“Think about your friends, or your sister, or your daughter, son, niece, or nephew. Think about every person out there who has nowhere else to go, nobody else to count on, nobody but Planned Parenthood,” writes Poehler to supporters of the organization. “It’s up to us to make sure Planned Parenthood is strong enough to protect their rights and their health. Especially because we are having a moment right now when people are trying to come up with new ways to make the lives of all the folks who rely on Planned Parenthood pretty difficult.”She concludes her letter by asking readers to join her in “saying that Planned Parenthood is awesome.”

Meanwhile, red states across the country are viciously attacking Planned Parenthood, falsely claiming that the non-profit somehow profits off of providing abortions. In Indiana, a judge sided with Planned Parenthood last week and ordered an injunction preventing the law that would have block Planned Parenthood from accepting Medicaid in the state from taking effect. The U.S. Department of Health and Human Services already denounced the defunding law in a letter issued earlier this month because the proposed change violates federal Medicaid rules by denying Medicaid patients the freedom to choose a qualified provider. Judge Tanya Walton Pratt stated that the federal government’s statement was a factor in her decision.

“Denying the injunction could pit the federal government against the State of Indiana in a high-stakes political impasse,” she told the court. “And if dogma trumps pragmatism and neither side budges, Indiana’s most vulnerable citizens could end up paying the price as the collateral damage of a partisan battle. With this backdrop in mind, along with the reasons discussed above, the Court believes the most prudent course of action is to enjoin the defunding provision while the judicial process runs its course.”

As a result of the injunction, PPIN will immediately resume serving its Medicaid patients, many of whom had been using it as their primary health provider.  “This decision will have immediate, positive consequences for our patients and our organization,” Planned Parenthood of Indiana President and CEO Betty Cockrum said in a statement. “This ruling allows us to resume providing Pap tests, breast exams, STD testing and treatment and birth control to both existing and new Medicaid patients.”

Image Courtesy of  http://www.flickr.com/photos/rubenstein_/

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