![An image of text is an excerpt from FirstX Laurie Sobel's quick take which reads, "[Indiana, Oklahoma, and Nebraska] are the only states that took additional state-level action to exclude Planned Parenthood from Medicaid during the year the federal ban has been in effect. With the expiration of the national ban on Planned Parenthood Medicaid reimbursement and the Medina decision clearing the way for states to exclude Planned Parenthood from Medicaid, other states may follow suit."](https://www.kff.org/wp-content/uploads/sites/7/2026/06/260625_Quick-Take_Laurie-Sobel_Website.png?w=1024)
The Sunsetting of the Federal Planned Parenthood Medicaid Ban Shifts Decisions to States
On July 3, 2026, the one-year federal ban on federal Medicaid reimbursements to Planned Parenthood and other reproductive health providers enacted as Section 71113 in the 2025 Federal Budget Reconciliation law expires. With the expiration of the federal ban, some states will now rely on the Supreme Court’s Medina v. Planned Parenthood South Atlantic decision to block the reproductive health provider from participating in their state Medicaid program.
The Medina ruling held that states may exclude providers from their Medicaid programs, and that Medicaid enrollees cannot seek relief in federal court to challenge those exclusions. This ruling marked a significant departure from longstanding interpretations of the Medicaid “free choice of provider” provision, which guarantees enrollees the right to obtain care from any qualified and willing Medicaid provider. When Planned Parenthood is excluded, people enrolled in Medicaid cannot use their coverage to obtain any preventive services, such as contraceptive care, STI treatment, and other cancer screenings at Planned Parenthood clinics. A KFF analysis finds that nearly one in five (18%) female Medicaid enrollees got their contraceptive care from a Planned Parenthood clinic in 2023, with even higher shares in states like California and Wisconsin, where nearly half and one third relied on Planned Parenthood for that care.
The sunsetting of Section 71113 will provide fiscal relief to the roughly eleven states (including CA, CO, CT, IL, MA, ME, NJ, NM, NY, OR, WA) that used state-only dollars to keep Planned Parenthood and other affected providers operational for their Medicaid enrollees over the past year. Once the federal ban lifts, these reproductive health providers can participate in Medicaid, and states can receive federal Medicaid matching funds, including the enhanced 90% federal match for family planning services. This will free up state general funds that have been used to backfill lost federal revenue. However, about half of the states have neither dedicated their own funds to keep Planned Parenthood operational during the federal ban nor previously sought to exclude Planned Parenthood from their Medicaid programs.
When the federal ban sunsets, each state can choose whether to include Planned Parenthood and other affected reproductive health providers in its Medicaid program. Over the past decade, many states sought to exclude Planned Parenthood clinics from their Medicaid programs, largely due to opposition to providing state funds to providers that also offer abortion services. Seven states (AR, MO, MS, NE, OK, SC, TX) currently ban Planned Parenthood’s participation, and at least seven other states (AL, AZ, FL, IA, IN, KS, LA) have enacted exclusions that courts blocked before the Medina ruling. All of these states except Louisiana and Mississippi have at least one Planned Parenthood clinic as of May 2026. Arkansas and Texas are the only two states whose pre-Medina exclusions were upheld by federal courts and took effect years before the Supreme Court’s ruling in Medina. Mississippi’s law excluding Planned Parenthood from Medicaid remains in effect, but Planned Parenthood no longer operates any clinics in the state, and its legal challenge to the law was dismissed as moot. Missouri enacted a ban on Planned Parenthood’s participation in Medicaid effective in August 2024; however, the state’s Planned Parenthood clinics are contesting their terminations through Missouri Administrative Hearing Commission proceedings, but the law remains in effect during their challenge.
In the wake of the Medina ruling, the Governors of Nebraska and Oklahoma issued executive orders blocking Planned Parenthood’s Medicaid participation. One week after the Medina ruling, Indiana’s Attorney General filed a request to undo a 2013 court ruling that stopped the state from blocking Planned Parenthood’s participation in Medicaid. But the court has not ruled on that request yet, so for now, the law blocking Planned Parenthood’s participation is not currently being enforced. These three states are the only states that took additional state-level action to exclude Planned Parenthood from Medicaid during the year the federal ban has been in effect. With the expiration of the national ban on Planned Parenthood Medicaid reimbursement and the Medina decision clearing the way for states to exclude Planned Parenthood from Medicaid, other states may follow suit.