Long-Term Care Facilities Bound by Medicare Arbitration Rule

Long-term care facilities must fully explain predispute arbitration agreements to their residents if they want to continue getting paid by Medicare and Medicaid, as the requirement doesn’t conflict with federal arbitration laws, the Eighth Circuit said.

A U.S. Health and Human Services Department rule placing conditions on payments when nursing homes use such agreements isn’t preempted by the Federal Arbitration Act, is a valid exercise of the agency’s authority, and was adopted in compliance with federal administrative rules, the U.S. Court of Appeals for the Eighth Circuit said.

The rule doesn’t prohibit nursing homes from including predispute arbitration clauses in ...