Skip to comments.Planned Parenthood Accused of Overcharging Govt by Millions, Probe Sought
Posted on 09/29/2008 1:19:42 PM PDT by wagglebee
Washington, DC (LifeNews.com) -- The head of a pro-life philanthropic firm is calling for a federal government probe of Planned Parenthood. The call for an investigation comes after Planned Parenthood affiliates in California were accused of overcharging the state by millions for birth control.
The accusation came in March, when P. Victor Gonzalez, a former Planned Parenthood official, filed a lawsuit against its affiliates in California saying they overcharged the state hundreds of millions of dollars on birth control.
Gonzalez says his own internal audit estimates that Planned parenthood overcharged California taxpayers for purchasing birth control by at least $180 million.
Gonzalez says the abortion business fired him because he raised concerns about the illegal practices.
Ray Ruddy, president of Gerard Health Foundation, has issued the call for the investigation.
He points out how the abortion business receives federal family planning funding through Title X, a 90 percent Medicaid match, as well as monies from the federal government to purchase drugs at reduced costs.
"Everybody, since Revolutionary times, has been billing the federal government at the cost -- that is the invoice cost to them, plus a fee," Ruddy told OneNewsNow. Planned Parenthood in California -- and we suspect others across the country -- has been billing at what they call their normal and customary rates."
Ruddy told the news site that he has written to Health and Human Services Secretary Michael Leavitt asking for a federal audit of Planned Parenthood and has filed suit seeking help from the courts.
"It looks to us, very much, that we found there are a separate set of rules for Planned Parenthood than the rest of us -- and there should not be. That's why the lawsuit was filed," he told the news site. "Hopefully the court will act on this, and everybody should be operating under the same set of rules."
Looking at the California situation, Gonzalez was the vice president of finance and administration for Planned Parenthood of Los Angles and, according to a Los Angeles Times report, the overbilling began in the late 1990s.
While other public health facilities and private facilities charged the state between $8 and $9 for a cycle of birth control pills, Planned Parenthood charged almost $12. The Planned Parenthood charge to the California government was several times more than it paid for the drugs originally.
That practice occurred until former state Sen. Hannah-Beth Jackson of Santa Barbara sponsored legislation allowing Planned Parenthood to charge more based on concerns the abortion business presented her that it would suffer financial problems without it.
However, altering the statute didn't address the billing practices prior to it and the Times says a 2003 state audit found at least $5.2 million in overbilling in 2003 alone from just one of the nine California Planned Parenthood affiliates.
A few million here, a few million there, pretty soon you’re talking about serious money there!
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Big Abortion has nearly $1 billion in cash reserves.
I would be wonderful if an investigation would lead to their closing down.
This is fraud and isn’t just a civil or tax matter, but criminal. It’s also potentially a class action, too.
I can’t believe that an “honorable” organization that murders innocent choldren would cheat the fedeal govt. sarc
We need to fight the federal, state and local governments DO NOT PAY FOR ABORTION! Also why is Planned Parenthood getting any funding at all? I have a question for those who keep track of the in and outs of abortion funding. I read here a while back that the Race for the Cure (Komen's?) send some of their money to Planned Parenthood. Is this true? If so I will not donate any money to them and also will work on making this public and demanding this change or they will not get any money from people who want this money to go strictly to breast cancer. We need to minimally force a separation of Planned Parenthood that gives medical care for poor folks and the arm that does abortion.
As it sits right now it is one in the same and unless this is broken a part of funding completely stopped (I WISH!) we won't be able to stop some of this money to going to abortions. If they are split up it will be easier to go after them when they merge the two areas. Thoughts?
They technically don’t get money for killing babies, but they overcharge for faulty condoms and substandard birth control pills.
Reality check. When you steal on the level these huge entities do, you're commended for a job well done. These "leaders" have properly included lots of highly placed officials that will also be dragged down if the pricipal operators of the scam are, so they are fully insulated from responsiblity.
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Sounds like a good time—in addition into to examining what exactly is going on with the funding—like an excellent time for an extensive audit.
But,but,but you don’t understand it all for the safety of the poor woman, oh wait I forgot they cahrge major money to murder the most innocent and it’s pay first before we kill your unborn baby.
why am I not surprised — goobermint plus liberals always equals massive fraud and corruption.