Stuart Gerson Quoted in “Question of Authority at Heart of Labor Dept. Health Rule Case”

Bloomberg Law

Stuart M. Gerson, Member of the Firm in the Litigation and Health Care & Life Sciences practices, in the firm’s Washington, DC, and New York offices, was quoted in Bloomberg Law, in “Question of Authority at Heart of Labor Dept. Health Rule Case,” by Madison Alder.

Following is an excerpt:

The Labor Department did nothing wrong when it took steps earlier this year to expand a type of small business health option called an association health plan, observers say in response to a new lawsuit that alleges the DOL overstepped its authority. …

Others cheered the lawsuit, saying the action the DOL took is something reserved only for Congress.

“I’ve said all along that this is going to be controversial,” Stuart Gerson, former Justice Department official in the George H.W. Bush and Clinton administrations and partner at Epstein Becker & Green, told Bloomberg Law. “Proceeding by this regulatory route rather than through statue is going to create disputes on a number of fronts, and this attorneys general lawsuit is an example of that.”

Gerson in April told Bloomberg Law the final rule would likely violate the federal Administrative Procedure Act because it would conflict with the Employee Retirement Income Security Act.

The rule is a mix of good and bad, said Gerson who favors more competition across state lines. The change should have gone through Congress, he said.