ABC for Health Faces Layoffs and Strategic Pause Amid Funding Challenges

an unoccupied office desk with organized manila folders, blank medical forms, and a landline telephone, looking out a window toward a snowy midwestern red brick

AI-generated illustration; not a photograph of the reported event.

  • calendar_today November 7, 2026

Nonprofit ABC for Health Suspends Most Client Services

ABC for Health, a public interest law nonprofit specializing in health insurance advocacy, has paused much of its client counseling work due to financial difficulties and recent staff layoffs. The organization, known for aiding clients with complex health insurance and Medicaid matters, is now in the midst of a broader strategic and succession planning effort expected to continue until at least mid-2027.

Layoffs Affect Key Client Support Staff

On September 30, five client-facing employees were laid off from ABC for Health, including Nick Grobarchik, a bilingual health advocate. Grobarchik worked extensively with clients who required emergency Medicaid coverage, especially those with urgent medical needs like end-stage renal disease. He emphasized the importance of the organization's support, stating that many families would have been unable to navigate the system without the nonprofit's intervention.

Tim Hennigan, a former staff attorney and one of those laid off, reflected on the importance of direct client work, describing it as part of the organization’s “secret sauce.”

Shifting Focus to Systemic Reform

ABC for Health, founded in 1994 by Bobby Peterson, has historically balanced direct client counseling with broader advocacy for policy change. Peterson, serving as the group’s executive director, acknowledged that the nonprofit’s funding—and, in turn, its ability to provide individual counseling—has fluctuated over time. He cited dwindling federal funds in 2026 as especially challenging, describing the period as “rough sledding.”

Brynne McBride, chief operating officer, explained the pause would allow ABC for Health to develop a new strategy, including potentially shifting away from direct client service in favor of systemic advocacy. The impact of such systems change work is exemplified by the organization’s role in campaigns against the so-called "birth tax," a policy that required unwed fathers to cover childbirth costs under Medicaid. Their advocacy contributed to Milwaukee County discontinuing the policy in its 2024 budget and Dane County ending similar claims in 2020, resulting in the elimination of $77 million in debt through policy changes.

Transition of Services and Referrals

During the strategic planning phase, most new clients are being referred to other organizations. ABC for Rural Health, a subsidiary of the nonprofit, continues to provide some services in rural areas under a specific grant. Other clients are being directed to Covering Wisconsin, local Aging and Disability Resource Centers, and Legal Action of Wisconsin for assistance.

Unionization Effort and Labor Agreement

Earlier in the year, ABC for Health employees notified management of their intention to unionize with the National Organization of Legal Services Workers (UAW Local 2320). Although the group did not receive voluntary recognition, seven staff members voted unanimously to unionize in June. Shortly thereafter, they learned that client services would end and that client-facing staff would be laid off in late September. In August, the employees expressed skepticism about the timing of the layoffs, which followed their successful unionization.

Peterson and McBride asserted that succession planning discussions predated the union initiative, beginning in January and February. Ultimately, both the union and management reached an agreement: laid-off staff received two months’ severance pay and three months of health insurance in exchange for retracting an unfair labor practice claim. The union also agreed to remove a website critical of management as part of the settlement.

Looking Ahead

ABC for Health continues to navigate its transition, balancing internal restructuring, resource constraints, and the evolving needs of clients seeking health insurance guidance and advocacy.

Source: isthmus.com.

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