Federal District Court Enjoins CMS Ban on Pre-Dispute Arbitration Agreements in Long Term Care Resident Agreements

“On September 28, 2016, the Center for Medicaid and Medicare Services (CMS) promulgated a lengthy final rule that, among many other things, banned pre-dispute binding arbitration agreements between nursing facilities in the Medicare or Medicaid programs and nursing home residents commencing November 28, 2016 (the “Rule”). The American Health Care Association, a long term care provider industry association, along with three of its members, quickly filed suit in federal district court in Mississippi seeking to preliminarily enjoin enforcement of the Rule in October. On November 7, a federal District Court judge issued the requested preliminary injunction. Am. Health Care Ass’n v. Burwell, No. 3:16-CV-00233 (N.D. Miss. Nov. 7, 2016).”

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