‘This Is a Backdoor Abortion Ban’

[Update: Mon., July 28, 2025, 11am] On Monday, a federal judge indefinitely blocked the Trump administration from enforcing a provision of the “One Big Beautiful Bill” that would prevent many Planned Parenthood clinics from receiving federal Medicaid reimbursements should they continue to offer abortion services, saying the policy was likely unconstitutional. Read the latest story here.

[Original Story] On Monday, July 21, a federal judge’s temporary restraining order expired — and with it went Medicaid reimbursements for all 114 Planned Parenthood clinics in California. That includes the six health centers run by Planned Parenthood California Central Coast, where nearly 30,000 patients rely on services and which now float in financial limbo. Statewide, the loss of funding could total as much as $300 million, threatening the ability of California’s entire reproductive health network to stay open, according to Planned Parenthood Affiliates of California.

“The Court’s decision, at least for now, allows the Trump Administration’s cruel, politically motivated attack on Planned Parenthood and our patients to move forward,” said Dr. Jenna Tosh, President and CEO of Planned Parenthood California Central Coast, in a statement. “This attack disproportionately harms patients in states like California, where abortion is still legal.”

“To be clear, this is a backdoor abortion ban,” said Luz Reyes-Martín, vice president of advocacy and marketing for Planned Parenthood California Central Coast, speaking on behalf of the affiliate. “Most Planned Parenthood health centers at risk of closure are in states where abortion remains legal. By undermining Planned Parenthood health centers’ ability to maintain services, even in states like California where abortion remains legal and is a constitutional right, they can disrupt access to reproductive health care across the country.”

The ruling stems from a provision in the congressional reconciliation bill known as the “One Big Beautiful Bill Act” that prohibits Medicaid reimbursements for nonprofit clinics providing abortion care and receiving more than $800,000 in federal reimbursements. On Wednesday, July 23, Central Coast Planned Parenthood confirmed that the court granted only a partial injunction — and that California’s clinics were not included.

The financial impact is significant. According to the organization, 69 percent of its patients use some form of Medicaid coverage — including Medi-Cal, CenCal Health, and Family PACT — and that funding accounts for $17 million annually, or roughly 60 percent of its total revenue.

Clinics remain open. Patients are still receiving care. But services provided this week are no longer reimbursable.

“As of the temporary restraining order ending on Monday, Planned Parenthood stopped billing CenCal Health,” said Marina Owen, CEO of CenCal Health, which administers Medi-Cal for Santa Barbara and San Luis Obispo counties. “They are still providing services. Those are uncompensated services at this juncture.”

CenCal covers about 25 percent of the patients receiving care through Planned Parenthood on the Central Coast. The organization is working with local partners to find a financial workaround — ideally one not affected by state or federal funding restrictions.

“We’re working closely with Planned Parenthood over the next week or two to see if there’s a possibility for local funding options… If that means we have to step up and think about funding Planned Parenthood in a different way, we’re willing to do that,” Owen said.

She added that CenCal is coordinating with state officials and plans to issue guidance to patients and providers once it has legal clarity from the Department of Health Care Services.

“We didn’t want to worry members that these services won’t be available if we can find a local solution to keep things going,” she said. “It’s a significant revenue stream, and obviously a year is a long time… They’ll need some local relief.”

Other Medi-Cal administrators in the region, including Ventura County’s Gold Coast Health Plan, are also in discussions about supporting Planned Parenthood’s operations during the funding ban.

“Accessing family planning and the services that Planned Parenthood provides is vital to young women and young men,” Owen said. “It’s important to us that access to care continues.”

Family PACT — a public program offering reproductive care to patients without insurance or those seeking confidential services — accounts for nearly 40 percent of Planned Parenthood’s care. And for now, Central Coast Planned Parenthood is continuing to provide that care, regardless of patients’ coverage status.

“Central Coast Planned Parenthood has not turned away a single patient due to their insurance status, immigration status, or any other reason,” said Reyes-Martín. “And we are doing everything we can to keep it that way.”

Still, staff acknowledge that the current approach is not sustainable in the long term.

“Any organization facing these unprecedented threats would be forced to consider staffing or operational changes,” said Reyes-Martín. “Without relief from the courts or the State of California, we are at risk of having to make difficult decisions to ensure we can sustainably continue to provide care.”

The organization has launched a fundraising campaign and is exploring other stopgap strategies to cover the coming year. The lawsuit challenging the defunding provision remains active, and additional rulings are expected in the months ahead.

“We are committed to doing everything possible to preserve all our services and continue to provide care to patients on the Central Coast,” Reyes-Martín said.