HHS Finalizes Rule Barring Union Medicaid Dues-Skimming

A half-decade ago, the Obama administration, in apparent defiance of federal statutes, issued a rule authorizing states to deduct union dues from home care providers whose income is partly or fully Medicaid-derived. The experiment now has ended. Yesterday, May 2, the Department of Health and Human Services (HHS) issued a final rule to protect non-joining independent providers from having a portion of their paychecks deducted and routed to a union. Public-sector unions have generated an estimated $200 million a year this way. Mark Mix, president of the National Right to Work Committee, calls the reversal “an encouraging action toward stopping union bosses from unlawfully using public payment systems to intercept tax dollars intended for providers caring for those in need.” The rule is set to take effect on or about July 5.

Union Corruption Update examined this issue at length last year. On July 12, HHS posted a Notice … Read More ➡

HHS, Nonprofit Group Combat Union Medicaid Dues-Skimming Schemes

Few things say “money in the bank” to a public-sector union quite like Medicaid. A proposed federal rule would end this freebie. On July 12, the Department of Health and Human Services (HHS) posted a Notice of Proposed Rulemaking to bar states from using Medicaid funds as a source of dues for unions representing home health care providers. Workers still would have the right to join a union. But non-joiners no longer would be captive of a state agency deducting dues and forwarding them to a union. Over a dozen states now engage in this practice. For organized labor, this arrangement generates around $200 million a year. That’s why unions and the states are resisting the proposed rule in the aftermath of the Supreme Court’s Janus ruling in June. A recent development in Washington State has strengthened the hand of reluctant dues payers while the department finalizes its rule.… Read More ➡