Right on Labor

Right on Labor is a project of the Fairness Center – a nonprofit public interest law firm offering free legal services to those hurt by public-sector union officials.

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Medicaid Rule Eliminates Regulatory Exception, Ending “Reassignment” of Medicaid Payments to Unions

June 4, 2019 David R. Osborne

Earlier this month, the Centers for Medicare & Medicaid Services (“CMS”) promulgated a new rule removing 42 CFR § 447.10(g)(4) in its entirety. Section 447.10 implements the general rule that Medicaid payments must be made to “providers” or “beneficiaries” and makes clear that those payments cannot be “reassigned” to any other entity. In other words, Medicaid payments must go straight to the person or entity providing services. Subsections (e), (f), and (g) included exceptions to that general rule.

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