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BREADCRUMB

 1. Justice.gov
 2. U.S. Attorneys
 3. Eastern District of Texas
 4. Press Releases
 5. Planned Parenthood Pays $4.3 Million To Settle Allegations Of Unnecessary
    Medical Care


Press Release


PLANNED PARENTHOOD PAYS $4.3 MILLION TO SETTLE ALLEGATIONS OF UNNECESSARY
MEDICAL CARE

Friday, August 16, 2013
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For Immediate Release
U.S. Attorney's Office, Eastern District of Texas

Department of Justice
Office of Public Affairs

       LUFKIN, Texas – Houston-based Planned Parenthood Gulf Coast has paid $4.3
million to resolve civil allegations under the False Claims Act in the Eastern
District of Texas, announced U.S. Attorney John M. Bales.

The government alleges that between 2003 and 2009, Planned Parenthood Gulf Coast
billed and was paid by government programs, Texas Medicaid, Title XX, and the
Women’s Health Program, for certain items and services related to birth control
counseling, STD testing and contraceptives when such items and services were
either not medically necessary, not medically indicated or not actually
provided.  Title XX is funded by the federal government while Texas Medicaid and
the Women’s Health Program are funded jointly by the federal government and the
State of Texas.

Of the $4.3 million settlement, the federal government will receive $3,594,604
and the State of Texas will receive $705,396.  The settlement resolves a False
Claims Act lawsuit filed in the Eastern District of Texas by Karen Reynolds, a
former employee of Planned Parenthood Gulf Coast.  The whistleblower or qui tam
provisions of the False Claims Act permit the relator to obtain a portion of the
proceeds obtained by the government.  As part of today’s resolution, Reynolds
will receive $1,247,000.

“We are very pleased to settle this matter for an amount of money that addresses
what was, in the Government’s view, an abuse of programs that are extremely
important to the well-being of many American women,” said U.S. Attorney Bales. 
“We will remain ever vigilant to protect the interests of American taxpayers and
the integrity of the Medicare and Medicaid health programs.  I am particularly
grateful to the whistleblower for bringing the matter to our attention.”

The claims settled by this agreement are allegations only; there has been no
determination of liability.

This case was investigated by the Texas Attorney General’s Civil Medicaid Fraud
Division and prosecuted by Assistant U.S. Attorney Kevin McClendon.




Updated March 12, 2015

--------------------------------------------------------------------------------

Component
USAO - Texas, Eastern


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February 21, 2023

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