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October 18, 2016

Centers for Medicare & Medicaid Services Sued Over Rule Banning Arbitration by Nursing Homes

The American Health Care Association (AHCA) filed a lawsuit this week against the Centers for Medicare & Medicaid Services (CMS), alleging the government agency “overstepped its authority in banning arbitration in a final rule issued last month,” reports Senior Housing News.

“We are taking this step to stop what is a clear overreach by CMS. Federal law plainly prohibits CMS from issuing this arbitration regulation,” said Mark Parkinson, AHCA president and CEO, in a press release. “The merits of allowing individuals in our centers and their families this legal remedy are clear: study after study shows that arbitration is fair and speeds judgments in a cost-effective manner that benefits those injured more than anyone else.”

The lawsuit cites a 2015 survey of “parties and attorneys who took part in arbitrations under the Kaiser Foundation Health Plan.” About 90 percent of respondents in that survey said the arbitration system was “as good or better than the state court system.”

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