SCOTUS Case Threatens Key Patient & Consumer Rights Regulations
TL/DR –
The U.S. Supreme Court is considering two cases, Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce, which challenge the Chevron deference, a legal doctrine that states federal courts should defer to the interpretations of federal agencies in cases where a law is ambiguous. Although these cases relate to the fishing industry, the court’s decision may impact various policy areas, including health care regulations regarding patient and consumer protections. Should the court reject the Chevron deference, this could influence how other laws are interpreted and implemented, potentially shifting more policy decisions to the courts.
US Supreme Court Reviews Cases that Could Impact Federal Regulations
The U.S. Supreme Court is currently reviewing two cases, Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce, which could alter the effect of federal regulations on laws established by Congress. Although these cases focus on fishing industry regulations, their outcomes could have far-reaching effects on other policy areas, including health care regulations and consumer protections.
Understanding the Chevron Deference
The Chevron Deference is a legal test derived from the Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc case in 1984. This test states that when a federal law is ambiguous, and a federal agency issues a final regulation addressing this ambiguity, courts should defer to the agency’s regulation, unless the court deems the regulation as an unreasonable interpretation of the law. This legal doctrine is currently the subject of scrutiny in the Supreme Court.
Current Supreme Court Case and Potential Decision
The plaintiffs in the current Supreme Court cases argue that federal agencies have overstepped their authority by issuing rules that would negatively affect their businesses. Despite the cases not directly involving health care, their outcomes could impact the future application of Chevron deference in reviewing regulations. The Supreme Court is expected to make a decision by June 2024.
Health Policy Implications
A decision to roll back Chevron deference could massively impact regulations in diverse policy areas, including environment, workplace conditions, finance, and technology. In terms of health policy, regulations govern everything from Medicaid and Medicare payment rates to drug price negotiations, pandemic response, pharmaceutical regulation, and coverage of mental health services. The rollback could potentially shift more policy decisions to the courts.
Potential Consequences of Overturning Chevron
Overturning Chevron deference could potentially lead to more agency regulations being overturned by courts and encourage litigants to challenge more regulations in court. This in turn could lead to a chilling effect on the issuance of federal regulations needed to implement key federal consumer protections. Ultimately, this could put millions at risk of losing certain coverage requirements.
Moreover, overturning Chevron could also lead to increased instability in regulatory standards. The outcome of the Supreme Court case will significantly influence the future of agency rulemaking and bears close observation as misinformation in health care continues to proliferate.
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