Overview

• A coalition of 23 states led by Democratic attorneys general filed a July 29 lawsuit in Massachusetts federal court against HHS, its secretary and CMS officials
• The complaint targets a One Big Beautiful Bill Act provision blocking Medicaid reimbursements for nonprofits that provide abortions and received over $800,000 in federal funding
• Judge Indira Talwani expanded a preliminary injunction nationwide on July 28 to suspend the defunding rule, a decision now under appeal by HHS
• Five Planned Parenthood clinics in California have closed and others have curtailed services after losing roughly $100 million in Medicaid payments
• Plaintiffs warn that cutting Medicaid reimbursements will deny low-income patients cancer screenings, STI tests and contraceptive care and force states to absorb new costs