HI michie,
If Planned Parenthood is reimbursed through medicaid for services that are covered services under medicaid, then they should be. If the nation doesn't want medicaid to reimburse for any services for which Planned Parenthood receives reimbursement, then the rules for medicaid reimbursement would have to be changed, so long as the current reimbursement does meet the rules for medicaid reimbursement.
There is nothing in the rules of medicaid reimbursement that says that because some provider might provide other non-covered procedures, that their covered procedures shall not be reimbursed. However, we can always work to change the rules if that's what the majority of people want and they make their legislators aware of such concerns.
For example: Many cosmetic surgeries are not covered by medicaid. However, if a medical necessity for such surgery is noted, then they often will. Now, just because a place that performs cosmetic surgeries performs many non-covered surgeries in which the patient must pay out of pocket or through some other insurance plan they might have, doesn't preclude medicaid for paying that same provider for a cosmetic surgery that does fall under medicaid's reimbursement policy.
God bless you,
In Christ, ted