Washington, D.C. (May 2, 2019) – Today the Department of Health and Human Services has issued a final rule that clarifies that the diversion of Medicaid payments from providers to third parties, including unions, violates federal law.

As a gift to the Obama Administration’s political backers, in 2014 that administration promulgated a regulation to give legal cover to ongoing schemes by the SEIU and other unions that siphoned off over $1 billion in Medicaid funds.

Mark Mix, president of the National Right to Work Foundation, issued the following statement:

“Today’s rule is another important step forward in protecting the rights of homecare workers from rapacious union officials. In 2014, Foundation attorneys freed homecare workers from compulsory union fee requirements in Harris v. Quinn, which held those fees unconstitutional.

Today, this long-overdue rule closes the illegal loophole created by the Obama Administration that that has provided union officials with legal cover to siphon hundreds of millions of dollars in Medicaid funds into union political and lobbying activities. While the rule will still need to be robustly enforced, today’s announcement is an encouraging action toward stopping union bosses from unlawfully using public payment systems to intercept tax dollars intended for providers caring for those in need.”

Click here to read the rule.

Click here for more information, including on the National Right to Work Foundation’s efforts for years to halt to scheme, including the landmark 2014 Harris v. Quinn U.S. Supreme Court decision invalidating union attempts to mandate Medicaid providers fund union activities.

The National Right to Work Legal Defense Foundation is a nonprofit, charitable organization providing free legal aid to employees whose human or civil rights have been violated by compulsory unionism abuses. The Foundation, which can be contacted toll-free at 1-800-336-3600, assists thousands of employees in more than 250 cases nationwide per year.

Posted on May 2, 2019 in News Releases