There are reports that Louisiana has decided to cut Medicaid funding to Planned Parenthood. It has been reported by state health officials that state law has been violated by the organization as it entered a $4.3 million false-claims-act settlement in Texas nearly two years ago.

The step could lead to end of bid of the clinics to keep hold of their Medicaid funding through a court challenge. The clinics challenge that the state cannot end their contracts without proof of unlawful activity.

This week, the Obama administration had warned the state that terminating contract of a qualified Medicaid provider without a solid reason is illegal.

On Friday, Olivia Watkins Hwang, a spokeswoman for the state health agency said in an e-mailed statement that Planned Parenthood's civil settlement in Texas provides Louisiana the explanation required for termination of the clinics' contracts under administrative code of the state.

Hwang said, "During the course of the state investigation into Planned Parenthood, it was discovered that Planned Parenthood is in violation of long-standing administrative rules applicable to Medicaid providers".

According to her, on Monday, a notice leaving out Planned Parenthood from the Medicaid program will be issued. Danielle Wells, who is a spokeswoman for Planned Parenthood's national organization, didn't respond to an e-mail asking for comment.

Planned Parenthood Gulf Coast had made a payment of $4.3 million in order to resolve a whistle-blower's allegation that it billed state and federal Medicaid programs for sexually transmitted disease screening, birth-control counseling and contraceptives.