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Chevron Doctrine No More: What the Supreme Court’s Ruling Means for Agency Authority

Client Alert

On June 28, 2024, the Supreme Court invalidated the Chevron doctrine, nearly 40 years after it first took effect.

The Chevron doctrine is a longstanding standard for decision-making that required Federal courts to defer to reasonable agency decisions where Federal law is silent or unclear. Though it historically garnered little attention, the doctrine had powerful practical effect, as it provided Federal agencies the power to publish necessary administrative rules interpreting vague or unclear Federal laws passed by Congress, essentially filling in the gaps left by Federal law. For areas of complicated Federal law like health care that require detailed knowledge and expertise, the ability of the pertinent regulatory agency to expound on Federal law served to facilitate the operations of Federal programs like Medicare and Medicaid.

In his majority opinion, Chief Justice John Roberts supported the end of Chevron based on its “misguided” presumption that federal agencies have competence to resolve statutory ambiguities. That competence rests with the Federal court system, not Federal agencies, according to Chief Justice Roberts.

Following the fall of Chevron, courts will not have to accept agency expertise in their review of challenged regulations, shifting from Federal agency expertise to generalist courts’ interpretations of Federal law.

In short, Friday’s ruling will likely impede the ability of Federal agencies to implement laws passed by Congress. Though agencies’ regulations will still have the force and effect of law, there will be a new incentive to challenge these rules in a court that will not have to afford deference to agency expertise where statutes are not clear. Overturning Federal regulations will result in barriers to implementing Federal programs.

For questions regarding how this decision could impact your business, please contact BMD Member Daphne Kackloudis at dlkackloudis@bmdllc.com or Attorney Jordan Burdick at jaburdick@bmdllc.com.


Corporate Transparency Act: Business Owners Must Act Now

The Corporate Transparency Act requires all reporting companies to file their Beneficial Ownership Information (BOI) report by year-end to avoid penalties. Companies formed before January 1, 2024, have less than six months to comply. Learn more in a client alert by BMD Member Blake Gerney.

New Medicare Billing Rules: What MFTs, MHCs, and IOP Providers Need to Know

Starting January 1, 2024, Medicare began covering services provided to Medicare beneficiaries by marriage and family therapists, mental health counselors, and Intensive Outpatient Program (IOP) services. With this change, Medicare has become the primary payer for these services.

Ohio Board of Pharmacy Update: Key Regulatory Changes and Proposals You Need to Know

The Ohio Board of Pharmacy (BOP) has rescinded certain OAC rules (OAC 4729:5-18-01 through 4729:5-18-06), removing regulations on office-based opioid treatment (OBOT) clinics. The rescissions took effect on June 3, 2024. The BOP also published a new rule, OAC 4729:8-5-01, which sets explicit reporting guidelines for licensed dispensaries and became effective on June 7, 2024.

LGBTQIA+ Patients and Discrimination in Healthcare

In early April, the Kaiser Family Foundation released a study outlining the challenges that LGBT adults face in the United States related to healthcare. According to the study, LGBT patients are “twice as likely as non-LGBT adults to report negative experiences while receiving health care in the last three years, including being treated unfairly or with disrespect (33% v. 15%) or having at least one of several other negative experiences with a provider (61% v. 31%), including a provider assuming something about them without asking, suggesting they were personally to blame for a health problem, ignoring a direct request or question, or refusing to prescribe needed pain medication.”

Ohio Recovery Housing Overhaul: New Standards and Certification Requirements Reshape Sober Living Spaces