Court Suspends Federal Ban on Forced Arbitration

On November 7, 2016, the implementation of a new rule forbidding nursing homes that enter binding arbitration agreements with residents from participating in the Medicare and Medicaid programs has been blocked by a U.S. District Court judge.  The judge issued a preliminary injunction against enforcement of the rule, pending an appeal brought by various nursing home groups, including the American Health Care Association.  They are arguing that the federal Centers for Medicare & Medicaid Services (CMS) did not have authority to issue the new regulation.  Until the legal battle is resolved, the rule will not be enforced.

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