Arbitration agreement

The AARP is among 13 organizations supporting proposed legislation that would prohibit federally-certified long-term care providers from requiring pre-dispute arbitration agreements with residents. 

The Long-Term Care Community Coalition, Justice in Aging and National Consumer Voice for Quality Long-Term Care are also among the organizations that sent a letter in support of the legislation to Reps. Linda Sanches (D-CA) and Jan Schakowsky (D-IL). The two lawmakers introduced the Fairness in Nursing Home Arbitration Act (H.R. 5326) last week.

“The use of pre-dispute arbitration agreements is fundamentally unfair, and facilities and home and community-based services (HCBS) providers that receive federal Medicaid and/or Medicare funding should not be permitted to impose them on consumers,” the letter stated. 

“When a person is seeking care for themselves or a loved one, they should be able to focus on the quality and range of services available. No one should be expected to anticipate or contemplate the occurrence of grievous harm or poor care when these agreements are signed upon admission or when one is about to begin receiving services,” the groups added. 

The legislation has been strongly opposed by the American Health Care Association, among other provider groups. 

“Banning arbitration agreements would eliminate a fair and efficient legal remedy that provides benefits to patients and providers. Skilled nursing facilities are just one of many health care providers that use pre-dispute arbitration,” Clif Porter II, the AHCA’s senior vice president of government relations, said in a statement. 

The proposed legislation has since been referred to the House Ways and Means, and Energy and Commerce committees.