July 2, 2024- The U.S. Supreme Court’s ruling overturning the Chevron deference and stripping power from federal agencies to interpret and enforce regulations may put a closer microscope on federal healthcare agencies. Under the 40-year legal precedent, courts are required to determine whether an agency’s interpretation of an ambiguous law is reasonable, which has given agencies ability to push regulatory priorities. But now, Chevron is overturned and no longer permissible under the Administrative Procedure Act and courts do not have to defer to reasonable agency interpretations.
CMS, as well as other federal healthcare agencies, may have a microscope on it moving forward with more scrutiny on provider reimbursement cuts, drug pricing regulation and other issues.