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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.


HHS Revokes Public Comment Requirement on Certain Policy Changes

The U.S. Department of Health and Human Services (HHS) has revoked the Richardson Waiver, eliminating the requirement for public notice and comment on certain policy changes. This decision allows HHS to implement new policies more quickly, potentially affecting healthcare funding rules like Medicaid work requirements. While it speeds up policymaking, it also reduces opportunities for stakeholder input, raising concerns over transparency and unintended consequences for healthcare providers, states, and patients.

Don't Get Caught Dazed and Confused: Another Florida Court Weighs in on Employer Obligations to Accommodate Medical Marijuana Use

A Florida trial court ruled in Giambrone v. Hillsborough County that employers may need to accommodate off-duty medical marijuana use under the Florida Civil Rights Act (FCRA). This contrasts with prior rulings and raises new compliance challenges for employers. With the case on appeal, now is the time to review workplace drug policies.

Corporate Transparency Act to be Re-evaluated

Recent federal rulings have impacted the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. While reporting requirements were briefly reinstated, FinCEN has now paused enforcement and is reevaluating the CTA. Businesses are no longer required to submit reports until further guidance is issued. For updates and legal counsel, contact BMD Member Blake Gerney.

Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.