In May of this year, American Life League obtained, through a Freedom of Information request, copies of the California Department of Health Services 2004 audit of Planned Parenthood of San Diego and Riverside Counties. This audit shows that one Planned Parenthood affiliate overcharged the state of California $5.2 million in a single year.
ALL has been circulating the audit document to members of Congress and is pleased to note that Planned Parenthood is under fire from members of Congress who are calling for a federal fraud investigation. American Life League has sent letters to every state attorneys general asking for an investigation of Planned Parenthood in every state. In addition, the Gerard Foundation is pressing for a full Congressional investigation.
“All evidence shows Planned Parenthood is robbing the American taxpayer,” said Jim Sedlak, vice-president of American Life League. “They’re asking the American people to fund their contraceptive and abortion products, and then pulling in the profit hand over fist.”
Planned Parenthood receives funding through many government programs, including the Title X Family Planning program and Medicaid. The Medicaid program funds up to 90 percent of contraceptive costs (such as the birth control pill) provided to eligible recipients. Planned Parenthood buys the birth control pill at deeply reduced prices from drug manufacturers and state regulations generally requires it to bill Medicaid at cost.
The California audit shows the Planned Parenthood affiliates were billing based on their normal retail fee. The San Diego affiliate alone overcharged the government by $5.2 million. This is a direct violation of the law.
In March 2008, the Los Angeles Times publicized a lawsuit by former Planned Parenthood official, P. Victor Gonzales against Planned Parenthood of Los Angeles. Gonzalez alleges he was fired in 2004 after he raised concerns about the “illegal accounting, billing and donations practices of Planned Parenthood.”
In his lawsuit, Gonzales alleges Planned Parenthood affiliates across the state may have overcharged the government $180 million between 1997 and 2003.
“Clearly something is wrong,” said Sedlak. “If what is going on in California is happening at Planned Parenthood affiliates around the country, the American people have been swindled out of millions if not billions of dollars. American Life League calls for an immediate and thorough investigation at the state and federal level.”
Because of Planned Parenthoods’ successs in lining it’s pockets with taxpayers’ money, American Life League is urging that the funds being allotted for dealing with the current economic crisis be safeguarded from misappropriation by Planned Parenthood.
The proposed Emergency Economic Stabilization Act of 2008 is all about making changes in matters that have major impact on the U.S. economy. As members of Congress work on this legislation, American Life League is asking that they make one very fundamental change.
“We are calling on Congress to ensure that Planned Parenthood Federation of America and its affiliates do not wind up with windfall profits from this Act,” said Jim Sedlak, president of American Life League.
“In the past,” said Sedlak, “Planned Parenthood has been very adept at exploiting large bills such as this to obtain more money for its coffers. It took in $336.7 million in taxpayer funding last year and is crying for more. We are asking members of Congress to add the following 18 words to this Act:
“None of the funds made available under this Act shall be available to Planned Parenthood for any purpose.
“As Planned Parenthood comes under increasing scrutiny for its financial dealings with the government,” Sedlak continued, “it only makes sense to be cautious and make sure that none of the $700 billion in this Act will reach the organization in any way. This is a common-sense addendum to the Act, and we trust members of Congress will do the right thing.”
