Obama Allowed Unions to Skim Medicaid Money- Trump Administration Deletes Rule

By Faye Higbee

After the Supreme Court ruled that forcing people to pay mandatory union fees was illegal, the Trump Administration is dumping a 2014 Obama-era rule that allowed Unions and insurance companies to skim Medicaid payments for healthcare workers to provide payment for fringe benefits.  Unions are are not happy about it.  Medicaid workers should be happy- their paychecks will be bigger.

The Daily Caller reported,

Though the Obama rule legalizing the practice went into effect in 2014, unions have been skimming money from Medicaid payments for nearly two decades, according to Freedom Foundation director for labor policy Maxford Nelson.

The practice has netted unions billions of dollars from public-sector home healthcare workers forced to pay union dues or “agency fees” equivalent to 85 percent of a dues payment to cover the cost of representation for non-members.

“It is very heartening to see this administration taking the first practical steps to stop states and unions from deducting money from the Medicaid checks of home caregivers serving our society’s disabled and elderly,” Nelson told The Daily Caller News Foundation in a statement. “This illegal and exploitive practice has victimized hundreds of thousands of caregivers. It has only been allowed to persist because it generated significant funds for a politically-connected special interest group.”

Called the “Janus Decision,” the Supreme Court stated that workers should not be forced to subsidize an organization’s lobby efforts when they are opposed to those efforts.  Mark Janus sued the union at his work because they were taking out fees every month from his check even though he is not a member of the union. The idea behind that was the unions didn’t want “free-riders” who weren’t part of their group even though they had to bargain for them.

The court ruled on the basis of the First Amendment being violated by forcing employees to pay.

Medicaid payments to caregivers that had money deducted from their checks on a monthly basis were in the same situation. Unions don’t like those “free-riders” and are not happy about the new rule change. Speaking from personal experience, the retaliation can be severe. But now with a Supreme Court decision to help back the rule change, caregivers will be in good position for a higher paycheck.