In Part I of this blog post, we explored the background of the Chevron Doctrine, setting the stage for a discussion on how its reversal impacts healthcare. If you have not read Part I yet, be sure to check it out here. The Chevron Doctrine stood for 40 years until this year’s landmark case, Loper Bright Enterprises v. Raimondo.
A pressing question now is whether elements of the No Surprises Act (NSA) will be scrutinized following the reversal of the Chevron Doctrine. Currently, the Texas Medical Association (TMA) II and III cases are on appeal to the Fifth Circuit Court of Appeals after the federal government lost at the trial court level. These cases should not be impacted by the Loper Bright decision. The federal trial court found the NSA statute was unambiguous, thus bypassing the need to address Chevron Doctrine issues.
Nevertheless, on July 3, 2024, the United States Department of Justice (DOJ) wrote to the Fifth Circuit, arguing that Congress had delegated authority to the Departments of Health and Human Services (HHS), Treasury, and Labor within the NSA. The DOJ stated that “this court should conclude that the Departments appropriately exercised their rule making authority.” Responses from the TMA plaintiffs are expected soon.
As mentioned in Part I, Senator Bill Cassidy of Louisiana has raised concerns that HHS would fully adopt and faithfully implement the Loper Bright policy, citing the four successful cases by the TMA against the Departments over the implementation of the NSA. The reversal of the Chevron Doctrine in Loper Bright Enterprises v. Raimondo has far-reaching implications for healthcare policy. To learn more and stay up to date on important developments, check out our latest episode of Zotec Answers.