The recent Supreme Court decision to overturn Chevron deference has significant implications for federal health-care programs, which could affect home medical equipment (HME) providers.
The Chevron deference, established in 1984, required courts to defer to federal agencies’ interpretations of statutes they administer. Its removal means courts will now independently review agency rules, potentially leading to more favorable outcomes for health-care providers challenging regulations.
This shift could lead to more litigation against federal rules, impacting areas like Medicaid reimbursements and staffing mandates. For the HME world, this could mean new opportunities to contest unfavorable regulations or reimbursement rates.
Jacob Harper from Morgan, Lewis & Bockius LLP said that this change gives providers a stronger voice in regulatory discussions.
“As we continue to shift from volume to value, and the revision of fraud and abuse laws and reimbursement methodologies takes hold, providers may have a stronger voice and a seat at the table,” he said. “That said, it is important for providers to utilize that position effectively and fairly.”
However, it also means that providers must engage effectively with regulators and policymakers, as agencies may be less likely to offer informal guidance.
The ruling might slow the development of new regulations and create regional disparities as courts in different areas interpret rules independently. Providers should assess their compliance and litigation risks in light of this new legal landscape and remain active in policy discussions, especially as Congress’s role in health-care policy becomes more prominent.
The upcoming presidential election could further influence the regulatory environment, making it crucial for home medical equipment executives to stay informed and engaged with legislative developments.
