What does the Act do?

The Fairness in Nursing Home Arbitration Act of 2008, or H.R. 6126, would prevent nursing homes from requiring potential residents to sign an arbitration agreement in order to be admitted into the facility. The Act does not say that facilities and potential residents cannot agree to arbitration at all – just that facilities cannot require it.

While most nursing home facilities do require arbitration agreements, consumer advocate groups say these agreements should be just that – agreeements – and not forced on those seeking admission. However, the healthcare industry is pushing back hard. It says that nursing home facilities will end up spending more time fighting lawsuits, less time caring for patients and that the court system would be overburdened. While the former remains to be seen, the latter has already been addressed.

Is the Act overburdensome?

Not according to a September 2008 cost estimate from the Congressional Budget Office (CBO). In its letter, the CBO explained:

Under the bill, CBO expects that the majority of disputes that could arise between a resident and a facility operator would be litigated in state courts and, therefore, would not substantially affect the caseload of the federal court system. Cases challenging the nullification of a particular arbitration agreement would be addressed in a federal court, but CBO expects that any such cases would have an insignificant effect on the overall workload of the courts. Therefore, CBO estimates that implementing H.R. 6126 would have no significant cost over the next five years. Enacting the bill would have no effect on direct spending or revenues.

To read H.R. 6126, go to http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.6126:/

While the Senate Judiciary Committee recently passed the bill, it must still be debated on the floor of the Senate. Regardless of whether it becomes law, those who have been injured due to nursing home or elder abuse should contact an attorney whose practice focuses in this area of the law to discuss their situation and find out what options are available. Consultations are free, without obligation and are strictly confidential. To contact an experienced nursing home abuse attorney, please click here. We may be able to help.