A federal hearings officer stated Friday that Indiana cannot deny Medicaid funds to Planned Parenthood of Indiana because the organization performs abortions. The hearings officer reasoned that individuals have the right to spend Medicaid money toward any federally-qualified health care provider.

A federal judge also threw out Indiana's law last year that would have made it legal for the state to deny Medicaid funds to Planned Parenthood for basic health services. The state has an appeal pending before a U.S. Circuit Court of Appeals in Chicago.

It should be made clear that under the Hyde Amendment money from Medicaid cannot legally go to abortions, except in cases of rape or incest. Supporters of the Indiana law, like Republican Gov. Mitch Daniels, argue that any Medicaid money nonetheless helps Planned Parenthood finances, and therefore indirectly subsidizes abortions.