CMS’ Arbitration Ban Suspended

Senior Living The Centers for Medicare & Medicaid Services’ (CMS) ban on pre-dispute arbitration agreements in nursing homes has been suspended until and unless the injunction is lifted. According to a memo released by the Department of Health & Human Services on December 9, 2016, CMS will not enforce the new rule prohibiting skilled nursing facilities, nursing facilities and dually-certified facilities from using pre-dispute binding arbitration agreements while there is a court-ordered injunction in place prohibiting enforcement of this provision.

CMS’ final rule Reform of Requirement for Long-Term Care Facilities was published in the Federal Register in October and became effective on November 28, 2016 but last month, the American Health Care Association (AHCA) filed a lawsuit against CMS claiming they violated the Federal Arbitration Act.  AHCA filed the complaint with the Mississippi Health Care Association and three Mississippi healthcare facilities claiming it, “will deprive both SNFs/NFs and their residents of the benefits of arbitration and result in the siphoning of resources towards litigation costs and away from resident care.”

The senior living experts at AssuredPartners NL will continue to watch this issue closely and assist clients with staying compliant with any updated rules and regulations. If your community would like more information on risk management and loss prevention services provided by the experienced senior living team, contact an AssuredPartners NL Senior Living agent.


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