'No intent of closing' Arizona clinics as Planned Parenthood sues over new Medicaid rule

Planned Parenthood says its clinics in some states will have to turn patients away or close down altogether because of a new rule in the Trump administration’s tax and policy megabill. But Planned Parenthood Arizona says its clinics are less vulnerable.

It is already illegal to use Medicaid funds to pay for abortions. But the new bill includes a provision that would also bar Medicaid reimbursements for annual checkups, STI screenings or other types of reproductive health care, if those services are performed at a clinic that provides abortions. The rule applies to clinics that received more than $800,000 from Medicaid in 2023.

Planned Parenthood Federation of America is suing, warning that its clinics in some states would go under without Medicaid payments.

“If implemented, this could put up to 200 health centers at risk of closure, ripping away access to basic health care services for more than 1.1 million patients,” a press release from the organization said.

But Arizona clinics are not among those at most risk, said Planned Parenthood Arizona interim CEO April Donovan.

“Our health centers are strong and healthy, and we have no intent of closing any of our sites,” Donovan said.

Because of the way the state Medicaid program — the Arizona Healthcare Cost Containment System — is set up with different provider networks, Donovan said only a limited number of AHCCCS patients are able to get care at Planned Parenthood clinics. She said AHCCCS members currently make up only about 5% of Planned Parenthood Arizona’s total patients. That puts Planned Parenthood Arizona under the $800,000 threshold outlined in the new Medicaid rule.

A federal district court judge has temporarily blocked the rule from taking effect. But Donovan said even if Planned Parenthood Arizona could no longer receive Medicaid reimbursement for AHCCCS patients, the organization could cover costs for their appointments with donations.

“Our biggest concern is continuity of care,” Donovan said. “And so we would like to use some of that donor money and our patient care funds and keep this care continuing for these patients that are already currently established with us at Planned Parenthood.”