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Medicaid Providers Denied Right to Sue Over Union Dues Deduction

June 8, 2022, 6:03 PM

Medicaid providers and former union members lost a suit to stop California from deducting union dues from their paychecks because the Medicaid Act’s anti-reassignment provision doesn’t give them a right to sue, the Ninth Circuit said Wednesday.

The provision, which prohibits states from making payments for services to anyone other than a Medicaid provider or recipient wasn’t intended to benefit providers and, therefore, doesn’t confer a private right of action on them, the US Court of Appeals for the Ninth Circuit said in two cases consolidated on appeal.

The text and legislative history of the anti-reassignment provision make clear that ...