Richard Hughes, Raja Sékaran Quoted in “‘Chaotic’ Health Care Rulemaking Looms After Supreme Court Hamstrings Federal Agencies”

Richard H. Hughes, IV, and Raja Sékaran, Members of the Firm in the Health Care & Life Sciences practice, were quoted in AIS Health, in “‘Chaotic’ Health Care Rulemaking Looms After Supreme Court Hamstrings Federal Agencies,” by Peter Johnson. (Read the full version – subscription required.)

Following is an excerpt:

On June 28, the U.S. Supreme Court in two rulings eliminated a longstanding legal precedent that has protected regulations issued by federal agencies from a broad swath of legal challenges. Attorneys say rulemaking in health care will become more unpredictable as regulations are challenged — which could cost health plans, providers, and patients. …

“Chevron deference traditionally required courts to effectuate the explicit intent of Congress if the statute was clear, rather than deferring to the agency's interpretation. For ambiguous statutes, Chevron required courts to defer to reasonable agency interpretations, recognizing their policy expertise…Congress relies on agencies staffed with specialized experts to address the myriad of complex issues that arise. Ambiguity in statutes is often necessary to provide these experts with the flexibility to develop innovative solutions tailored to specific challenges,” says Richard Hughes IV, partner at Epstein Becker Green. …

The changes wrought by the end of Chevron deference will happen slowly, according to Raja Sékaran, partner at Epstein Becker Green.

“I think it will take some time to play out,” Sékaran tells AIS Health, a division of MMIT.

Hughes agrees that “these things take years to develop.” …

Sékaran “cannot say with certainty what rules are going to be challenged” — partly because it’s hard to rule out a legal challenge to any regulation going forward. That said, Sékaran does have one notable prediction that has already been borne out.

“We know from the history of health plans and providers dealing with the federal health care programs that, invariably, there are going to be some disputes — especially in the area of reimbursement, both to health plans and providers,” Sékaran says.