The AP is reporting Donald Berwick, Obama's Medicaid administrator, sent the Indiana Medicare office a letter saying Indiana's Medicare plan is illegal. Indiana just passed a law making federal funding of Planned Parenthood illegal.
"Medicaid Administrator Donald M. Berwick says Indiana's plan will improperly bar Medicaid beneficiaries from receiving services. Berwick writes that federal law requires Medicaid beneficiaries to be able to obtain services from any provider qualified to provide services."
UPDATE: AP updated the story to say Indiana's attorney general is looking into the matter. They also included this quote from a Republican state representative: "Indiana's on solid legal ground," said state Sen. Scott Schneider, an Indianapolis Republican who sponsored the measure to strip Planned Parenthood's funding. "There's no reason for us to change course at this time. It's up to them to prove that this is not legal."