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Dr. Oz Investigates Medicaid Funds Flowing to Unions and Political Action Committees in Nine States

Summary

  • CMS Administrator Dr. Mehmet Oz sent letters to the governors of nine states asking detailed questions about Medicaid payments to home health workers and how union dues are being deducted from those taxpayer-funded checks.
  • The letters raise concerns that Medicaid dollars intended for patient care may be flowing into union treasuries and then into political action committees that support Democratic candidates and causes.
  • The targeted states include California, Illinois, Washington, Oregon, Massachusetts, Connecticut, Minnesota, New York, and Missouri, all of which have large unionized home health workforces paid through Medicaid programs.


What Happened
Dr. Oz, acting through the Centers for Medicare and Medicaid Services, sent formal letters to the governors of nine states requesting information on how Medicaid funds are being used to pay home health aides and whether union dues are being automatically deducted from those payments without clear worker consent.

The concern centers on states where home health workers are heavily unionized, often by the Service Employees International Union (SEIU). In these programs, Medicaid pays the wages, and unions then deduct dues directly from the workers’ checks. Critics have long argued that this arrangement effectively routes taxpayer money into union political operations, including PAC contributions that overwhelmingly support one political party.

The letters specifically ask governors to verify whether workers gave explicit consent for dues deductions and to examine whether any portion of those funds ends up supporting political activities. This action builds on Dr. Oz’s broader crackdown on Medicaid waste, fraud, and abuse that began earlier in 2026.


Why It Matters
Medicaid exists to provide medical care to low-income Americans, seniors, and people with disabilities. When taxpayer dollars meant for patient care are siphoned into union dues and then into political action committees, it represents a misuse of public funds for partisan political purposes.

This is especially problematic in states where union political activity is heavily one-sided. Taxpayers in every state are forced to subsidize a system that funnels money into political operations they may strongly oppose. The lack of transparency around consent for dues deductions further erodes trust in how Medicaid dollars are actually being spent.


The Bigger Picture
This investigation is part of a larger effort by the Trump administration and Dr. Oz to restore accountability to Medicaid after years of explosive growth in spending and documented fraud in home health, personal care, and related programs. Several of the targeted states have faced previous federal scrutiny for rapid spending increases that did not match actual patient growth.

Unions have become deeply embedded in Medicaid-funded home care in many blue states through consumer-directed programs and collective bargaining. When government programs pay the wages and unions automatically deduct dues that flow to political causes, it creates a direct pipeline from taxpayers to partisan politics. Dr. Oz’s letters force governors to confront whether this arrangement complies with federal rules requiring that Medicaid funds be used for legitimate medical services and whether workers are being given real choice over dues deductions.

If the investigation confirms that Medicaid money is indirectly funding political activity on a large scale, it would represent a significant scandal involving the misuse of one of the largest federal entitlement programs. Cleaning up this pipeline is essential to protecting both patients and taxpayers.

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