Opting out of arbitration?

In My Humble Opinion
1

I’m about to turn 65, and have been approved for a Medicare advantage program with Kaiser. Yesterday I received a form from them giving me the opportunity to opt out of their system of binding arbitration for settling disputes.

My understanding is that binding arbitration agreements generally favor the big organization versus the individual. One reason is regulatory capture: the organization uses the same arbitrators over and over, so the arbitrators end up identifying with the organization, and maybe even being dependent on it.

It seems to me the main advantage I’d gain from arbitration is the ability to represent myself in relatively small disputes. That is, I wouldn’t have to have a lawyer for an arbitration hearing. The main disadvantage is that I’d lose the ability to have a dispute heard by a jury and a truly independent judge.

I should say that I’ve never sued anyone, and I don’t anticipate ever doing it. Regardless, there’s always a possibility of a dispute, such as a billing issue or a malpractice claim. I want to protect myself.

I should also say that several years ago my father had a billing dispute with Kaiser that went to arbitration, and we were unhappy with the result. I’ll share the details if anyone asks.

2

I’m expressing only my opinion on this. IANAL.

I never sign binding arbitration agreements.

I view them as a mechanism companies use to 1) preload an outcome that leans heavily in their favor; and 2) to foreclose my option to bring a lawsuit in regular court. I’ve had receptionists “explain” that the arbitration agreement they were trying to get me to sign doesn’t say what it plainly says. And I once walked out of a dental office because they would not accept my decision to not sign their binding arbitration agreement.

I’m not a sue-happy person at all. Due to working for many years for a court and seeing first hand on a daily basis just how difficult the process is for all involved, I long ago decided to resolve disputes outside of courtrooms if at all possible. The sum total of my lawsuit-bringing consists of one Small Claims matter. (I won.) You, too, always have this option for relatively small disputes.

However, under certain circumstances I would bring suit, and I never want my access to the courts to be denied.