Nursing homes have long blocked abuse and harassment claims from reaching courts. A major new federal rule puts a stop to that

Nursing homes have long blocked abuse and harassment claims from reaching courts. A major new federal rule puts a stop to that.

Wednesday, September 28, 2016 6:33 PM EDT

The federal agency that controls billions of dollars in Medicaid and Medicaid funding has moved to prevent nursing homes from forcing claims of elder abuse, sexual harassment and even wrongful death into the private system of justice known as arbitration.

The agency, the Department of Health and Human Services, on Wednesday issued a rule that bars any nursing home or assisted-living facility that receives federal funding from inserting an arbitration clause into its contracts.

The rule, which would affect 1.5 million nursing home residents, promises to deliver major new protections.

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