Supreme Court Backs States on Medicaid Provider Exclusions

The U.S. Supreme Court ruled 6-3 that Planned Parenthood cannot sue South Carolina over its exclusion from Medicaid funding, determining that Medicaid recipients lack an individual right under Section 1983 to challenge state decisions about provider eligibility. Authored by Justice Neil Gorsuch, the decision clarified that the case was not about abortion funding, but whether states may disqualify providers for offering abortion services outside the Medicaid program. Justice Clarence Thomas, in a concurrence, suggested further limits on civil rights claims against states, while dissenting Justice Ketanji Brown Jackson warned the ruling could harm Medicaid recipients and weaken civil rights protections. The decision could prompt other Republican-led states to pursue similar exclusions and potentially restrict other healthcare providers in the future. Advocates have expressed concern that the ruling undermines access to essential health services for millions of Medicaid beneficiaries. The case sets a precedent that narrows federal court avenues for challenging state Medicaid provider exclusions.