Trump administration proposes making nursing home lawsuits more difficult

President Donald Trump's administration seeks to loosen federal regulations surrounding arbitration agreements signed by nursing home consumers, reports The New York Times.

The effort would make it harder for consumers of nursing home services to file lawsuits by getting rid of a rule issued under former President Barack Obama's administration. Under the rule, nursing homes would have been prevented from requiring consumers to agree to use arbitration rather than sue to resolve disputes over alleged substandard or negligent care, according to the report.

The rule first came to light under the Obama administration, which sought to get rid of arbitration agreements. Nursing homes challenged the rule, and implementation was prevented, "pending a trial on the merits of the case," according to the report. At the time the rule was issued, the Obama administration said it was "almost impossible for residents or their decision-makers to give fully informed and voluntary consent to arbitration before a dispute has arisen," reports NYT.

The current administration, however, "believes that arbitration agreements are, in fact, advantageous to both providers and beneficiaries because they allow for the expeditious resolution of claims without the costs and expense of litigation," the report states. NYT notes that in addition to the proposal to keep arbitration agreements, federal officials have also proposed these agreements "be written in 'plain language' and be explained to the consumer 'in a form and manner that he or she understands.'"

The Trump administration's proposal has drawn support and opposition. Among the supporters are nursing homes, while attorneys general of more than 15 states, which argue arbitration agreements "may be neither voluntary nor readily understandable" for nursing home consumers, and more than 30 senators, are among the objectors, according to the report.

Read the full story here.

 

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