June 6, 2017

FAIR ARBITRATION NOW COALITION

Trump Plan Would Deprive Injured Nursing Home Residents and Families of Their Day in Court

Fair Arbitration Now Coalition Condemns Proposal to Reverse Nursing Home Patient Protections

The Fair Arbitration Now (FAN) Coalition condemns a proposal by the Centers for Medicaid and Medicare Services to reverse critical protections for nursing home residents harmed by mistreatment and legal violations.

Last year, the Obama administration issued a rule prohibiting forced arbitration “rip-off clauses” in nursing home contracts. These clauses deny residents access to the courts to seek compensation for fraud, abuse or neglect, forcing them instead to seek redress before corporate-friendly arbitrators, with hearings held in secret and few grounds permitted for appeal.

Nursing home admissions can be a stressful and confusing time for seniors and their families. They are in no position to evaluate the coercive fine-print terms in contracts, appreciate the critical constitutional rights they are giving up by entering into a forced arbitration agreement, or walk away from the contract if they object to rip-off provisions.

Because arbitration clauses are not truly voluntary unless both parties agree to arbitrate after a dispute arises, the Obama administration rule was a major step forward for nursing home residents’ rights to hold accountable those who mistreat residents.

This reversal by the Trump administration would hurt nursing home residents at a vulnerable time their life. The FAN Coalition urges CMS to not to reverse this critical rule.

A full list of FAN coalition members can be found here.