This letter from the CMS outlines the requirements for long-term care facilities to ask a resident or their representative to enter into an agreement for binding arbitration. The facility must not require any resident or their representative to sign an agreement for binding arbitration as a condition of admission or to continue to receive care at the facility and must explicitly inform the resident or their representative of their right not to sign the agreement. The agreement must be explained in a form and manner that is understandable, including in a language the resident and their representative understands. The agreement must also grant the resident or their representative the right to rescind the agreement within 30 calendar days of signing it, and must explicitly state that neither the resident nor their representative is required to sign an agreement for binding arbitration as a condition of admission or to continue to receive care. The agreement must not contain any language that prohibits or discourages the resident or anyone else from communicating with federal, state, or local officials. The new requirements emphasize the residents’ or their representatives’ right to make informed decisions and choices about important aspects of residents’ health, safety and welfare. Long-term care facilities must take steps to ensure that the arbitration agreement is explained in a manner that is understandable, and must not require residents or their representatives to enter into a binding arbitration agreement as a condition of admission or to continue to receive care.

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