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CMS Abandons Rule Allowing Medicaid to Pay Home health Worker Union Dues

Posted on Friday, May 3, 2019 8:25 PM

This week, CMS finalized a rule that will not allow home health care worker unions to receive dues from state Medicaid payments.

“This final rule is intended to ensure that providers receive their complete payment, and that any circumstance where a state redirects part of a provider’s payment is clearly allowed under the law,” said CMS Administrator Seema Verma in a statement. This change will take effect in 60 days.

“The CMS proposal is likely to have a negative impact on unions more than any other party,” said William A. Dombi, President of the National Association for Home Care & Hospice (NAHC), when the rule was first announced. “The policy change could make it harder for a union to collect dues. SEIU has unionized a number of the individual providers. The rule change is likely to stand in the way of a state automatically diverting some of its Medicaid payment to the union to cover a dues obligation. While this should not affect home care companies, it is worthy of some note as an ‘anti-union’ measure.”

CMS estimates that unions could have collected as much as $71 million Medicaid payments to home health workers.

Source: NAHC Report

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