A new rule released by the Centers for Medicare and Medicaid Services on September 28 prohibits nursing homes that receive Medicare or Medicaid funding from including binding arbitration clauses within their admissions contracts. These pre-dispute binding arbitration clauses were often hidden within fine print and forced residents and resident’s representatives to resolve all disputes in arbitration, rather than in court. But this won’t be the case under the new rule, which also prohibits nursing homes from requiring a resident or resident’s representative to sign an arbitration agreement as a condition of admission to the nursing home. Note that only future admissions will be subject to the new rule. In addition to banning pre-dispute binding arbitration agreements, the new rule also includes new requirements intended to improve the quality of care and reduce unnecessary hospital re-admissions.
Fraser Trebilcock provides counsel on all matters relating to the legal planning for care and support of those needing Medicare and Medicaid. Attorney Melisa M. W. Mysliwiec focuses her work in the areas of Elder Law and Medicaid planning, estate planning, and trust and estate administration. She can be reached at email@example.com or 616-301-0800. You can also click here to learn more about our Trusts & Estates practice.