Washington, D.C. (1 October 2008) – 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's attorney general asking for an investigation of Planned Parenthood in each 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 require it to bill Medicaid at cost.
The California audit shows that 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 Gonzalez 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, Gonzalez 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."
American Life League was cofounded in 1979 by Judie Brown. It is the largest grassroots Catholic pro-life organization in the United States and is committed to the protection of all innocent human beings from the moment of creation to death. For more information or media inquiries, please contact Katie Walker at 540.659.4942.
FOR MORE INFORMATION:
California Department of Health Services: Planned Parenthood of San Diego and Riverside Counties Audit (19 November 2008)
Los Angeles Times: Planned Parenthood Accused of Overcharging for Contraceptives (8 March 2008)
One News Now: Planned Parenthood Under Investigation for Fraud (30 September 2008)