Trump Plans to Undo Obama Rule Letting Unions Skim Dues From Medicaid Payments
The Trump administration is taking steps to prevent labor unions from withholding dues for home healthcare workers from their Medicaid payments, an Obama-era innovation that many observers believe is illegal.
On Tuesday, the Centers for Medicare and Medicaid Services (CMS) proposed undoing a 2014 rule allowing states to skim public-sector union dues from Medicaid payments to independent home healthcare providers on the theory that those providers are de facto public employees — a privilege that has netted unions anywhere from $71 million (CMS’ estimate) to $200 million (State Policy Network) annually.
“The law provides that Medicaid providers must be paid directly and cannot have part of their payments diverted to third parties outside of a few very specific exceptions,” Tim Hill, acting director for the Center for Medicaid and CHIP Services, said in a press release. “This proposed rule is...