Senate Committee approves legislation that would invalidate mandatory banding arbitration provisions of nursing home admission contracts

Sep 15 2008

The Senate Judiciary Committee on Thursday approved by voice vote a bill (S 2838) that would ban the use of mandatory arbitration clauses in nursing home contracts, CQ Today reports.

The clauses require that people seeking to enter a nursing home and their family agree to waive their right to take disputes regarding care at the facility to court and must settle them through arbitration. The House Judiciary Committee in July approved a companion bill (HR 6126).

Sen. Orrin Hatch (R-Utah) voiced concern about the potential costs of the bill to the federal government, as many nursing home bills are paid by Medicaid and Medicare. Sens. Arlen Specter (Pa.), the ranking Republican on the committee, and Chuck Grassley (R-Iowa) said the retroactive applications of the measure to existing contracts could be problematic. Sen. Russ Feingold (D-Wis.) said that while the bill would apply to existing contracts, it would not influence current disputes.

Sen. Herb Kohl (D-Wis.), the bill's sponsor, in a statement said, "Our goal is to protect residents and families from being forced to make a critical decision about their legal rights during the stressful and emotional process of admission into a nursing facility, at which time families are focused solely on finding their loved one the best possible care and not on the legal technicalities of arbitration" (Stern, CQ Today, 9/12).