Trump Administration Blocks States From Skimming Medicaid Payments for Unions

The Trump administration on May 2 finalized a Medicaid rule that will cut off states from skimming Medicaid payments for home caregivers and diverting them to labor unions.

While federal law requires Medicaid payments to be made directly to the service providers, several states began flouting the requirement in the 1990s, by diverting portions of the payments toward union dues.

In 2017, eight states took approximately $150 million in Medicaid payments from the wages of more than 350,000 caregivers, according to a report by the Freedom Foundation, a non-profit that has led the fight to curtail the practice.