Are states allowed to pick and choose what entities are allowed to provide services paid for with federal dollars, especially when those groups are already following strict rules?  It’s a question that the government will be closely examining as they decide whether or not Indiana’s attempt to cut off funding to the state’s Planned Parenthood clinics is legal.

Via The Washington Post:

The U.S. Centers for Medicaid and Medicare Services issued a statement saying it was reviewing Indiana’s law and situations in other states threatening to withhold funds from abortion providers.

“Federal law prohibits federal Medicaid dollars from being spent on abortion services. Medicaid does not allow states to stop beneficiaries from getting care they need – like cancer screenings and preventive care – because their provider offers certain other services,” the agency said. “We are reviewing this particular situation and situations in other states.”

The statement, given to The Associated Press on Monday, was first reported by The New York Times.

The state of Indiana insists it will continue to defend its law, despite questions over its constitutionality, proving that Governor Mitch Daniels is likely considering a 2016 Presidential run.