Supreme Court ruling limits federal agency authority

In a landmark decision, the U.S. Supreme Court on June 28 overturned the long-standing Chevron doctrine, a pivotal legal principle that directed courts to defer to agency interpretations of statutes if deemed reasonable. This previously allowed agencies substantial latitude in shaping regulations across sectors, including healthcare. The recent 6-3 ruling rebukes Chevron as an overreach that undermines judicial authority. The decision, prompted by a dispute over fishing industry regulations, asserts that judges must independently interpret laws, not cede that power to administrative bodies. As a result, judges will have more power to decide whether an agency’s interpretation of a statute is correct. The decision could lead to more litigation challenging healthcare regulations, possibly resulting in delayed implementation of new laws. Congress also will need to write more detailed and prescriptive laws so that all stakeholders, including the agencies, understand what is needed to implement them.