Editor’s note: Practice Compliance Solutions summarized the recent U.S. Supreme Court decision that can have a significant impact on health care policies. Read the full analysis here.
On June 28, 2024, the U.S. Supreme Court concluded Loper v. Raimondo, overturning a 40-year-old ruling—the Chevron Doctrine. This longstanding rule stated that in cases related to federal regulations and compliance, the courts were instructed to defer to the federal agencies’ reasonable interpretations of the law. Since these agencies wrote the laws and regulations, it makes sense that they would be the “expert” on interpretation of the rules. Somehow, SCOTUS felt otherwise.
With Chevron gone, compliance and regulatory interpretations have been directed to individual federal, state and local courts. This decision is felt by many to be one of the most significant cases for federal health policy. It could have an impact on all areas of regulation.
For example, what if an employee requests a private entrance to your practice and a private office due to anxiety? Historically, the ADA, which wrote the disability rules, would decide if this was a “reasonable request” based on the individual aspects of your business—one main agency making rules. Now that decision can be made by any federal courts and every state court instead of one agency deciding the rules. Another example could be whether or not you must encrypt patient data. There could be 50 or more such decisions. It could also affect the requirement that most Affordable Care Act health plans cover preventive services and could now mean health care policies for patients, providers or insurers could differ greatly from one area to another.
Health care compliance may have just become as chaotic as the Mad Hatter’s world in Alice in Wonderland.
This ruling reduces the power of executive agencies, endangers numerous regulations and transfers authority from the executive branch to Congress and the courts. Here are just a few of the agencies that eye care professionals and business owners encounter:
• Centers for Medicare and Medicaid Services (CMS)
• Health and Human Services (most things health care)
• Office of Civil Rights (HIPAA)
• Equal Employment Opportunity Commission (most things HR)
• Food and Drug Administration
• National Institute of Health (health care policies)
• Center for Disease Control (more health care policies)
• Occupational Safety and Health Administration (OSHA)
• Americans With Disabilities Act
• Federal Trade Commission
The full impact of the Chevron ruling will depend on how individual courts apply new standards in specific cases—such as eyeglasses and contact lens rules under the FTC, discrimination opinions, federal vision plan challenges, open interpretations of the No Surprise Act, the upcoming HIPAA Omnibus Rule and Medicare’s ability to negotiate drug prices. Predicted results include massive court backlogs, inconsistent rulings, variable policies based on where you practice and a significant increase in lawsuits against providers and payers.
The Supreme Court’s decision fundamentally alters the dynamics of regulatory authority, making it essential doctors stay informed and proactive in responding to these developments, and expert compliance support can help. It also means we must all stay engaged with legislative processes and advocate for clear and effective health care regulations.
|