Trump Cracks Down on Disability Skimming

New rule could cost unions $71 million

The Trump administration is moving to block unions from collecting federal funds directed to care for disabled people, which could cost labor organizations at least $71 million.

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.”

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