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Overturning Chevron Doctrine Could Impact Medicare’s Drug Selections For Price Negotiations
Forbes November 14, 2024
In June, the Supreme Court overturned the decades-old Chevron doctrine that empowered a federal agency’s “reasonable interpretation of ambiguous federal laws.” This ruling could constrain regulatory agencies, specifically with respect to their latitude in interpreting and operationalizing laws as they see fit.
Since 1984, the Chevron doctrine has served as a framework for federal courts in deciding disputes between federal agencies and private parties over the legality of executive branch decisions and statutory regulations. For example, Congress has granted the Centers for Medicare and Medicaid Services considerable discretion in making policy decisions based on laws that were passed in Congress.
To illustrate, under the Inflation Reduction Act, CMS has been given the authority to select and then negotiate the prices...
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