By Brian Fitzpatrick
© 2010 WorldNetDaily
"This case isn’t going to shut down a billion dollar operation in California," Weber observed. "But it could induce other states to look at Planned Parenthood billing practices in their own jurisdictions. If enough lawsuits get filed and enough illegal billing is brought to light, Planned Parenthood might become toxic, like ACORN, and political pressure could force Congress to withdraw support."
The California suit was filed by P. Victor Gonzalez, the former chief financial officer for Planned Parenthood-Los Angeles. According to the ACLJ, the suit alleges that "PP affiliates in California illegally marked up the supposed cost of various birth control drugs when seeking government reimbursement, resulting in tens of millions of dollars of overbilling" to the state and federal governments.
ACLJ continued, "State audits in both California and Washington State have found PP affiliates guilty of overbilling."
Gonzalez alleges that Planned Parenthood fired him in 2004 after he began asking questions about the organization's billing practices.
ACLJ also notes that "the federal False Claims Act (FCA) forbids government contractors from submitting 'false or fraudulent' claims for payment. The FCA also authorizes private individuals to bring suit against the offenders to recover the fraudulently obtained funds."
Attorneys representing Planned Parenthood argued unsuccessfully before the 9th Circuit that Gonzales was not a qualified whistleblower under the FCA.
Planned Parenthood billing practices have come under scrutiny across the nation.
The Abortion in Washington blog reports that an audit by that state's Department of Social and Health Services concluded that between 2004 and 2007, Planned Parenthood of Spokane overbilled Medicaid for condoms, conducted unnecessary pregnancy tests and charged for doctor's visits when patients were simply picking up prescriptions.
The agency ordered Planned Parenthood of Spokane to reimburse the government $630,000 plus interest and suggested that Planned Parenthood of Spokane could lose its Medicaid billing privileges if the improper practices continued.
New Jersey Right to Life reported last month that a series of three audits performed by the inspector general of the U.S. Department of Health and Human Services revealed extensive overbilling by family planning clinics in that state.
Clinics, "especially Planned Parenthood providers," routinely billed the federal government for medical services that don't qualify as "family planning services." The federal government picks up 90 percent of the cost of family planning services, rather than an even split with the state government, a significant savings to the state.
According to ACLJ's Weber, the 90:10 split encourages state governments to approve claims by third parties like Planned Parenthood, which in turn give political support to state governments. The inspector general recommended that New Jersey pay back nearly $3 million to the federal treasury.
WND spoke with several press aides from the Department of Health and Human Services, who confirmed that the department has the authority to invoke a "sanction of exclusion" to cut off funding to organizations that commit fraud. The aides could not say when the policy might be applied to Planned Parenthood.
