Filling the hole in federal Medicaid funding for deliberate parenthood: State responses
In a coverage transfer lengthy sought by abortion opponents, the federal authorities has now codified a ban on Medicaid funds supporting care supplied at Deliberate Parenthood clinics and different areas. Part 71113 of the Federal Finances Reconciliation Act of 2025 prohibits Medicaid funds to sure reproductive well being care services that present abortion take care of one 12 months from the date of enactment. This ban contains all providers, together with contraceptive care, preventive care and different providers, not simply abortion. Based mostly on the factors within the legislation, three entities affiliated with Deliberate Parenthood, Maine Household Planning and Well being Imperatives are excluded from receiving federal Medicaid income. Nonetheless, a handful of states have introduced they may fill present gaps left by losses in federal funding to assist entry to care for his or her residents. These funds will permit suppliers to proceed to serve the enrollees they take care of in these states to various levels, however within the remaining states, the lack of Medicaid income will significantly restrict their potential to proceed seeing Medicaid sufferers. This letter discusses the standing of State commitments to fund reproductive well being care suppliers coated to this point beneath Part 71113.
Whereas there are ongoing lawsuits difficult Part 71113, the availability is at the moment in impact, however a ultimate choice on the deserves of those instances may come after July 2026, when the one-year funding ban is not in impact. After Part 71113 enforcement went into impact for Deliberate Parenthood in September 2025, some Deliberate Parenthood associates supplied providers to Medicaid beneficiaries on a free or reduced-fee foundation, permitting sufferers to proceed receiving care no matter their potential to pay. Nonetheless, federal Medicaid funds aren’t flowing to the clinics, and solely a handful of states have stepped in to offer funding to assist care. In September 2025, Deliberate Parenthood mentioned it might cowl the price of care for many of its sufferers on Medicaid – an estimated $45 million in care. Nonetheless, the group acknowledged that these efforts aren’t sustainable in the long run.
Deliberate Parenthood’s position in offering household planning providers to Medicaid enrollees
Deliberate Parenthood is a big nationwide supplier of household planning providers. Deliberate Parenthood associates keep well being facilities in 46 states and the District of Columbia, offering providers to greater than 2 million sufferers yearly. Greater than half of Deliberate Parenthood sufferers depend on Medicaid for his or her well being care protection, and a KFF evaluation exhibits that almost one in 5 (18%) Medicaid enrollees acquired their contraceptive care from a Deliberate Parenthood clinic in 2023 (Exhibit 1). This share is increased in states like California and Wisconsin, the place practically half and one-third, respectively, of feminine Medicaid enrollees who acquired contraceptive care went to a Deliberate Parenthood well being clinic. Deliberate Parenthood well being clinics are positioned primarily in rural or medically underserved communities, and are generally the one clinic in a neighborhood that gives sexual and reproductive well being care, together with contraception. Due to Deliberate Parenthood’s distinctive position in offering sexual and reproductive well being care, analysis exhibits that Medicaid enrollees could be harmed in the event that they had been excluded from Medicaid reimbursement as they might face rising difficulties in accessing contraceptive strategies, main care, and different sexual and reproductive well being care.
State efforts to scale back hurt for Medicaid enrollees receiving care at Deliberate Parenthood Well being Facilities
California
On October 23, 2025, California Governor Newsom introduced a plan to allocate greater than $140 million in state funds to assist Deliberate Parenthood well being facilities attributable to losses in federal funding attributable to Part 71113. California has greater than seven Deliberate Parenthood associates that service greater than 100 well being facilities. At California Deliberate Parenthoods, greater than 80% of sufferers depend on public medical insurance plans resembling Medi-Cal and the Household Planning, Entry, Care and Remedy Program (FPACT). KFF estimates that in 2023, 47% of feminine Medicaid recipients in California who acquired their final contraceptive go to of 2023 went to a Deliberate Parenthood clinic for that care.
Colorado
In August 2025, Colorado Governor Polis signed laws (Senate Invoice 25B-2) that doesn’t allocate a selected greenback quantity to Deliberate Parenthood, however as a substitute states that Colorado will reimburse a corporation designated as a “prohibited entity” beneath the Federal Finances Reconciliation Legislation of 2025 utilizing state funds. This ensures state funding for Deliberate Parenthood clinics in Colorado that present care to Medicaid individuals with out inserting a selected greenback quantity on the allocation.
Connecticut
On December 18, 2025, Governor Lamont introduced an allocation of $8.5 million to Deliberate Parenthood of Southern New England to make up for misplaced federal reimbursement for the interval that Part 71113 was in impact.
Illinois
On December 23, 2025, the Illinois Division of Healthcare and Household Companies introduced a $4 million funding in Medicaid household planning providers to offset the lack of federal Medicaid reimbursement for Deliberate Parenthood attributable to Part 71113. The division estimates that Deliberate Parenthood will obtain $4 million in federal Medicaid reimbursement by 2024 for providers resembling contraception, testing and therapy of sexually transmitted infections, most cancers screenings and different household planning providers that Illinoisans depend on.
Massachusetts
On July 24, 2025, Governor Healey introduced a plan to offer $2 million in state funds to the Deliberate Parenthood League of Massachusetts to assist continued entry to sexual and reproductive well being, together with most cancers screenings, contraception, and STD testing and therapy. These state funds aren’t ample to completely offset the lack of federal funds. By 2023, Deliberate Parenthood League of Massachusetts acquired roughly $4.7 million in Medicaid funds in 2023, and the federal match in Massachusetts ranges between 50% and 90%, with a 90% match for household planning providers. Massachusetts has not allotted any cash to Well being Imperatives, one other household planning supplier in Massachusetts that at the moment can not obtain federal Medicaid reimbursements.
Maine
The Maine Legislature handed two payments (LD 143, LD210) allocating greater than $6 million to household planning suppliers, together with Deliberate Parenthood of Northern New England and Maine Household Planning earlier than Part 71113 of the Reconciliation Act grew to become legislation. Though these legal guidelines had been enacted earlier than Deliberate Parenthood and Maine Household Planning may not obtain federal Medicaid funding, the allocation of those state funds may offset among the losses the organizations have suffered because of the Medicaid funding ban.
New Jersey
In fiscal 12 months 2023, New Jersey’s two Deliberate Parenthood associates collectively billed New Jersey’s Medicaid program $6.9 million. The state paid $1.4 million of those claims, and the federal authorities paid the remaining $5.4 million. On December 24, 2025, Governor Murphy introduced an $8 million allocation to reproductive well being care suppliers who’re not eligible to obtain federal Medicaid funds. The allocation covers each state and federal Medicaid reimbursements that Deliberate Parenthood associates would have acquired if not for Part 71113.
New Mexico
On October 3, 2035, Governor Grisham of New Mexico signed emergency laws allocating $3 million to a contract with Deliberate Parenthood for well being providers to Medicaid sufferers. Any unused steadiness remaining on the finish of the 2026 finances 12 months will likely be returned to the final assets.
New York
On October 24, 2025, New York Governor Hochul introduced that the state will cowl any Deliberate Parenthood expertise funding shortfall ensuing from Part 711113. The state has instructed Medicaid suppliers that will be thought of “Prohibited Entities” to proceed submitting claims, and they are going to be paid utilizing solely state {dollars}. Deliberate Parenthood has 5 associates that function 48 clinics within the state.
Oregon
In Oregon, Deliberate Parenthood of Columbia Willamette acquired greater than $15 million in state and federal Medicaid {dollars} in 2024. In November 2025, in an emergency session, their legislature allotted $7.5 million to Deliberate Parenthood associates for the upcoming fiscal 12 months, with Part 71113 in impact.
Washington
Washington estimated that it paid greater than $23.8 million to Deliberate Parenthood for providers to Medicaid enrollees in 2023, with $11.8 million coming from the federal authorities. On July 9, 2025, Governor Ferguson introduced that the state would cowl any hole in Deliberate Parenthood’s Medicaid funds, as they might not be eligible for funding from the federal authorities.