Rep. Johnson Applauds Rule to Protect Nursing-Home Residents from Forced Arbitration

WASHINGTON, D.C. – Today, Rep. Hank Johnson (GA-04) issued the following statement after the Department of Health & Human Services issued a rule Wednesday to prohibit nursing homes that do business with Medicare or Medicaid from inserting forced arbitration clauses into their patient contracts:

“This rule is a watershed moment in the protection of consumer rights. Last year, I called on the agency to strengthen the proposed rule, which would not have adequately protected residents. In recognition of these concerns, the final rule will ensure that arbitration is truly voluntary and only occurs after a dispute has arisen. For far too long, forced arbitration clauses have deprived nursing-home residents and their families of the right to their day in court for every cause of action against unscrupulous caregivers. I thank Acting Administrator Slavitt for this strong rule that rejects the well-documented harms associated with forced arbitration.”

According to The New York Times, the rule will affect 1.5 million nursing home residents and promises to deliver major new protections.

Congressman Johnson is the author of the Arbitration Fairness Act and ranking member of the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law, which exercises jurisdiction over issues of arbitration.

###