Medicaid funding is restored to Planned Parenthood, but the pause cost California clinics

Planned Parenthood clinics can bill Medicaid this month after a yearlong ban on covering its services put in place by congressional Republicans and President Donald Trump expired — but not before the health provider permanently closed four centers in the Bay Area because of the policy, officials said.

FROM THE ARCHIVES: Planned Parenthood to close five Northern California clinics, including in San Mateo and Gilroy

Spokespeople for local branches of Planned Parenthood said they would have closed more health centers had Gov. Gavin Newsom and California Democrats not budgeted at least $230 million for reproductive health providers in the past fiscal year. Now, as Republicans in Congress contemplate blocking funds again, some Planned Parenthood clinics are offering Botox injections and hormone therapy for women nearing menopause to raise revenue.

The loss of federal money forced the closure of five of its 35 health centers in California and Nevada. In the Bay Area, that included clinics in South San Francisco, San Mateo, Gilroy and Santa Cruz, said Andrew Adams, a spokesperson for the Planned Parenthood Mar Monte affiliate,

While Planned Parenthood’s abortion care put it in the crosshairs of some Republicans, the centers provide testing for sexually transmitted infections, birth control, cancer screenings and gender-affirming care, Adams said.

Since 1980, federal funds cannot be used for most abortions, so the ban targeted the other services provided at Planned Parenthood clinics. The policy erased 75% of their revenue “overnight,” Adams said.

While the full impact of the Trump administration policy was blunted by Newsom and California Democrats, who backfilled the funds with $90 million in grants for reproductive health providers — in addition to the release of $140 million Newsom announced in October to keep abortion providers in operation — the funding gap of $100 million had already forced the closures, Adams said.

The local affiliate also laid off 12% of its staff, he said, and shuttered a clinic in Madera. Executives decided to close those particular clinics because they were located within a 30-minute drive of another reproductive health center, Adams said.

“The vast majority of patients, we were able to transfer over to one of our nearby health centers,” he said.

Planned Parenthood is a national network of nonprofit affiliates, including seven in California. Adams said the Mar Monte affiliate sees the most patients of any in the U.S. Those numbers dipped slightly as it shuttered the health centers, he said, from 317,000 visits in the 2024-25 fiscal year to about 300,000 the following period.

In December, the affiliate launched new health care offerings at some clinics, including in the Bay Area. Botox injections are now available at the Planned Parenthood clinic in Redwood City. In San Jose, patients can opt for customized IV hydration packages as a “hangover helper,” its website shows. The goal is to raise revenue to help subsidize reproductive care, Adams said.

Riding a national surge of interest in treatments for menopause, the affiliate also began offering specialized care for women in perimenopause, a period before menopause begins that can bring insomnia and brain fog. Treatments can include hormone therapy, Adams said.

Although Medicaid funding is flowing again to Planned Parenthood, the fierce debate over the prominent reproductive health provider is far from settled. Anti-abortion groups, including National Right to Life and Susan B. Anthony Pro-Life America, are pressing Republicans in Congress to permanently end the use of taxpayer funds for Planned Parenthood.

Laura Echevarria, press secretary for the Virginia-based National Right to Life, an anti-abortion advocacy group, said taxpayers should not contribute to Planned Parenthood in any way.

“Those tax dollars free up tax dollars that Planned Parenthood can use for other areas, like lobbying for abortion,” she said.

But Mary Ziegler, a UC Davis law professor and expert on abortion issues, said Republicans are skittish about further restricting abortion ahead of the 2026 midterm elections — a pivotal contest that could remove Trump’s ability to carry out his sweeping agenda. Some national election forecasters are expecting an uphill battle for Republicans in November.

“They didn’t want to call attention to a weakness of the GOP on the eve of the midterms, already when they are not in a super enviable polling position,” she said.

The political battle will continue, as Planned Parenthood’s campaign and advocacy arm vows to campaign against California Republicans who supported the measure that cut reimbursements.