HomeNewsTrump Administration Issues Rule Against Union Disability Scheme
July 13, 2018
Trump Administration Issues Rule Against Union Disability Scheme
By 1600 Staff
A new rule from the Trump Administration is set to deal a blow to unions who are skiming federal funds from in-home care providers.
The Washington Free Beacon Reports:
The Centers for Medicare & Medicaid Services initiated a new rule that will prevent unions from collecting payments from home health aides, many of whom are caring for disabled relatives. Millions of dollars are paid to those caregivers each year from the federal government, but it is up to states to distribute the money. Several states have forced them to surrender portions of their dues to local unions in order to continue receiving their federal reimbursements in the past. The Center for Medicaid and CHIP Services has proposed a rule to officially prohibit such schemes.
“This proposed rule would remove the regulatory text that allows a state to make payments to third parties on behalf of an individual provider for benefits such as health insurance, skills training, and other benefits customary for employees,” the proposal says. “We are concerned that these provisions are overbroad, and insufficiently linked to the exceptions expressly permitted by the statute.” The rule could put a major financial dent into union coffers if it is adopted. Labor organizations receive tens of millions of dollars taken from Medicaid and Medicare reimbursements each year, according to a department analysis of payments to several states, including union strongholds such as New York and California. The policy, however, would not hinder any recipient from volunteering to pay a labor organization.
“We estimate that unions may currently collect as much as $71 million,” the proposal says. “If a state elected to maintain the same level of payment, and if homecare providers opt to continue all voluntary payments presently being reassigned, then the rule may have no impacts.”
The current framework allows unions to act as a third party collector of federal monies for disabled union members. This has been source of numerous lawsuits, as their have been allegations of mismanagement of the monies by the unions. This move could deny significant amounts of money to unions, who allegedly divert the federal funds away from the patients and caregivers to unions in states where they have power. The rule is open for comment until August, but is on the road to implementation.