The US Department of Justice plans to intervene in a $1.8 bn Medicaid fraud lawsuit against Planned Parenthood in Texas, potentially strengthening the federal government’s role in the case following the election of a Democratic state attorney general, according to Reuters.
The announcement came days after Nathan Johnson defeated Republicans to become Texas’ next attorney general, replacing Ken Paxton, who supported the lawsuit and unsuccessfully ran for the US Senate.
- The Justice Department plans to seek permission to join a $1.8 bn lawsuit accusing Planned Parenthood of improperly collecting Medicaid reimbursements in Texas and Louisiana.
- Federal intervention follows the election of Democrat Nathan Johnson, who has indicated that he will review lawsuits pursued by outgoing Republican Attorney General Ken Paxton.
- Planned Parenthood denies wrongdoing and warns that an adverse ruling could force it to close its remaining operations in Texas.
DOJ seeks federal role in Texas Medicaid fraud case
According to a federal court filing submitted on November 6, the Justice Department intends to file a formal motion to intervene by November 13.
The lawsuit, originally filed in 2021, alleges that Planned Parenthood and several affiliates improperly received Medicaid payments after Texas and Louisiana moved to terminate their participation in the government-funded healthcare program.
Texas joined the litigation in January 2022 under Paxton’s leadership.
The plaintiffs are seeking repayment of approximately $10mn in disputed Medicaid reimbursements, together with substantial penalties under the federal False Claims Act and applicable state laws. Total potential financial exposure exceeds $1.8bn.
The allegations concern payments received while court orders temporarily prevented the termination decisions from taking effect.
Planned Parenthood maintains that the reimbursements were lawful because the organization remained eligible to participate in Medicaid during the litigation.
The organization also disputes allegations that its national federation can be held responsible for legal advice provided to affiliated healthcare providers.
Federal intervention follows Texas election
The Justice Department’s decision comes amid a change in Texas’ political leadership. Johnson’s election raises questions about whether the state will continue pursuing litigation initiated or supported by Paxton.
Federal intervention could allow the lawsuit to proceed with direct US government participation regardless of changes in the state attorney general’s position.
The case resumed after the US Court of Appeals for the Fifth Circuit ruled unanimously in August 2026 that Planned Parenthood’s appeal of an earlier decision denying immunity was premature. That ruling cleared the way for proceedings to continue following a nearly three-year suspension.
The parties have proposed an April 2027 trial date, although the schedule remains subject to court approval.
For Planned Parenthood, the financial implications are substantial. The organization has warned that an unfavorable judgment could threaten its ability to continue providing healthcare services in Texas.
The Justice Department’s planned intervention does not establish that Medicaid fraud occurred. The allegations remain contested, and the court has yet to determine liability.
