The U.S. Supreme Court heard arguments on Wednesday in a case that could have significant implications for Medicaid funding and the ability of states to determine which healthcare providers receive public funds. At the center of the case is South Carolina’s decision to cut off Planned Parenthood’s ability to provide services to Medicaid beneficiaries.
The dispute arose when South Carolina sought to exclude Planned Parenthood from its Medicaid program when the state’s governor issued an executive order to remove abortion clinics from the program. The organization provides abortion services, though Medicaid funds generally do not pay for abortions. Planned Parenthood and a Medicaid beneficiary sued the state, arguing that the exclusion violated federal law, which allows Medicaid beneficiaries to receive care from any qualified provider.
Lower courts have ruled against South Carolina, finding that federal law protects a Medicaid recipient’s right to choose their provider. Planned Parenthood provides access to health care such as physical exams; cancer, diabetes, anemia, high cholesterol, and high blood pressure screenings; pregnancy tests; and contraception. The federal Medicaid law states that patients have the right to go to “any qualified and willing” medical provider. Planned Parenthood argues that it is such a qualified provider, though the South Carolina Department of Health and Human Services argues that states can disqualify a provider for any reason.
During oral arguments in the Supreme Court, the Justices appeared divided on the issue. Justice Brett Kavanaugh voiced concern over the confusion in the lower courts. Justice Amy Coney Barrett questioned whether low-income patients should be forced to take the risk of going to their chosen provider and potentially paying out of pocket if their only avenue of recourse is to appeal an administrative denial of coverage after the fact.
Meanwhile, South Carolina’s attorneys argued that the state has the authority to determine which providers meet its standards, asserting that federal law does not prevent states from making such exclusions. The essential question of the case is whether the Medicaid Act’s “any qualified provider” provision gives Medicaid beneficiaries a private right to choose a specific provider.
The Supreme Court’s ruling, expected later this year, will determine whether states have the power to block certain healthcare providers from receiving Medicaid funds based on state-level determinations rather than federal criteria. If the Court sides with South Carolina, it could pave the way for other states to follow suit, potentially affecting access to care for thousands of Medicaid patients nationwide.
Additional Reading
Supreme Court appears divided over whether states can cut off Planned Parenthood funding, AP News (April 2, 2025)
Supreme Court to decide if states can strip Planned Parenthood of Medicaid funds, NPR (April 2, 2025)
Medina v. Planned Parenthood South Atlantic, Oyez
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