SUI T CH A L L ENGE S E XCL USI V E REPRE SEN TAT ION [5] UNIONS L IE A B OU T M A S S E XODUS [6] C ONSER VAT I V E IDE A S DON ’ T NEED A C A B A L [9]
LIVINGLIBERTY A PUBLICATION OF THE FREEDOM FOUNDATION | MARCH 2019
LET’S MAKE
A DEAL
FERGUSON SUED FOR COLLUDING WITH UNIONS TO KILL MEDICAID REFORM PLAN
Electronic Service Requested
Freedom Foundation PO Box 552 Olympia, WA 98507
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ashington Attorney General Bob Ferguson is the object of a new lawsuit alleging his office conspired with two national unions to block efforts by the Trump administration to stop states from illegally skimming union dues from Medicaid payments to home caregivers serving disabled and elderly clients. The charges are related to documents obtained via public information request by the Freedom Foundation. However, because Ferguson’s office over-redacted certain documents and simply refused to produce others, the Olympia-based policy organization filed its action in Thurston County Superior Court accusing the AG of violating Washington’s Public Records Act (PRA). The lawsuit is the latest development in the Freedom Foundation’s two-year effort to press for and support federal action to end the illegal union deductions from Medicaid. Beginning in the 1990s, unions like the Service Employees International Union (SEIU) and the American Federation of State, County and Municipal Employees (AFSCME) worked to unionize Medicaid-paid home caregivers by persuading sympathetic state governments to pass laws permitting them to do so. As of 2017, Freedom Foundation research concluded
By MAXFORD NELSEN, Labor Policy Director
that at least eight states were deducting nearly $150 million in union dues each year from the Medicaid payments of more than 350,000 home caregivers. However, as the Freedom Foundation report also explained, federal law requires Medicaid payments to be made in full to home caregivers, and states violate the law when they divert part of a caregiver’s wages to a third party, like a union, that provides no services to Medicaid beneficiaries. Nonetheless, in direct contradiction of the statute, the Obama administration in 2014 adopted a regulation purporting to authorize deductions from home caregivers’ wages for “benefits customary to employees.” In response, the Center for Medicaid Services (CMS) in July 2018 issued a notice of proposed rulemaking (NPRM) announcing its intent to repeal the Obamaera rule. The public comment period on the NPRM ended in August. Emails provided to the Freedom Foundation by the AGO reveal the states of Washington, Oregon and California are working with SEIU and AFSCME to coordinate their legal activity once the regulation is finally repealed. It’s not clear whether the coalition intends to bring suit against CMS for repealing the regulation or if it intends to jointly defend against enforcement action brought by CMS for continuing to skim union dues from Medicaid payments illegally. The first email was sent on June 8, 2018, by Casey Pitts — a partner at the San Francisco labor law firm Altshuler Berzon LLP — to: n Stacey Leyton and Peder J. ThorSee LAWSUIT Page 10