Mandatory Arbitration in Nursing Home Admission Contracts
A proposed rule change introduced by the Trump administration would authorize mandatory, pre-dispute arbitration in long-term care admissions contracts. The proposed rule is in response to an Obama administration rule that prohibited federal funding for long-term care facilities that required residents to resolve disputes through arbitration.
ABA Writes Letter Opposing Rule Change
In a recent letter, the American Bar Association (ABA) advocates for the Centers for Medicare and Medicaid Services (CMS) to retain its current rule prohibiting long-term care facilities from entering into binding arbitration agreements with residents until after a dispute arises. In the letter sent to CMS administrator Seema Verma, the ABA writes that implementing the proposed rule would harm residents’ rights and interests.