This Should Never Have Been Legal

Yesterday The Daily Caller reported that President Trump made a change to a 2014 Medicaid regulation. Some states had been skimming money from Medicaid payments and funneling it into union coffers.

The article reports:

The Obama administration issued a regulation that protected a state practice that had, by that time, been practiced for decades. Since the 1990s, states have accepted Medicaid money from the federal government meant for home health service providers, often the family or friends of the Medicaid-assistance recipient, according to the conservative think tank Freedom Foundation.

In distributing checks to the health providers, some states had begun skimming money and diverting it to unions and other interest groups in the form of dues, even though home health providers may not be members. The Center for Medicaid Services will begin cracking down on the process in July.

…The new regulation will prevent states from skimming up to $150 million per year from Medicaid payments and diverting it to other causes. The Freedom Foundation found that in 2018 eight states – California, Connecticut, Illinois, Massachusetts, Minnesota, Oregon, Vermont and Washington – were skimming money off Medicaid payments to caretakers.

As expected, the unions opposed this new regulation:

Unions slammed the Trump administration over the new rule. The Service Employees International Union (SEIU), one of the largest public-sector unions in the U.S., said the new policy was “anti-worker.”

The final rule attacks “roughly 800,000 home care workers’ ability to use common paycheck deductions for health insurance contributions, union dues, and other expenses,” the SEIU said in a statement. “The rule wrongly targets independent provider home care workers who, without a union, are faced with a physically and emotionally demanding job with a median wage of just $10.49 an hour, no healthcare, no paid sick time and no benefits.”

How about letting home care workers decide for themselves whether or not they want to join a union or pay union dues? The Obama regulation was simply another way to put money in union coffers that they could donate to Democrats during election cycles.