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Mandatory Nursing Home Arbitration Ban Not Part of New Proposed Rule

Despite forceful calls by House Democrats and the Consumer Financial Protection Bureau’s (CFPB) for a ban on mandatory nursing home arbitration agreements earlier this year, the new proposed rule by the Centers for Medicare and Medicaid Services (CMS) doesn’t contain any such provision.

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The agency has toyed with requiring such a measure in the past, but it’s most recent proposed rule, while acknowledging “concerns” about forced arbitration, doesn’t go so far as to ban it.

This move was sharply criticized by The New York Times’ Editorial Board in an opinion titled, “Nursing Home Residents Still Vulnerable to Abuse.”

Arbitration clauses, for those who may not be familiar, are popular in a range of industries and are highly favored by corporations because they essentially skew dispute resolution in their favor, effectively protecting them from liability.

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