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Ban on arbitration agreements put on hold by federal court

Earlier this year, the Centers for Medicare and Medicaid Services issued a new rule that banned arbitration agreements in nursing home resident contracts. In essence, nursing homes were not required to forced their residents to surrender their judicial rights and submit to arbitration during a dispute or alleged an injury.

The first rules were passed earlier this year and due to enter force November 28th, 2016. It was projected to cost the nursing home industry $831 million in the first year and $736 million per subsequent year.

But a lawsuit filed by the American Health Care Association in Mississippi in October argued that the CMS exceeded its statutory authority. Furthermore, the court enjoined CMS from disbursing and enforcing this rule. On November 7, 2016, the federal court granted the plaintiff’s request and issued a preliminary injunction against CMS entering the final rule.

The court noted several concerns regarding the authority of CMS and the length to which it may interpret its statutory duties.

If you believe your loved one suffered a nursing home injury, then you should call a lawyer as soon as possible. Nursing homes are required to keep your loved one safe and provide them care. Only through dedicated and consistent monitoring can you hold them to their standards. A lawyer can help you get the compensation your loved one needs to care for their worsened condition.

Source: National Law Review, “CMS Ban on Nursing Home Arbitration Agreements on Hold for Now,” Jennifer Anderson Hill, Deva A. Solomon, Nov. 8, 2016

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