Supreme Court’s Decision to Overrule Chevron Doctrine Set to Impact Behavioral Health Regulations

After a landmark decision by the U.S. Supreme Court, lower courts will now have more say in behavioral health care regulation.

In a 6-3 vote, the Supreme Court overruled a 40-year decision known as the Chevron doctrine that required lower courts to defer to federal agencies on the interpretation of unclear statutes.

The decision could impact regulations governing Medicaid and Medicare payment rates and insurance coverage of mental health services, according to KFF.

In a post-Chevron world, federal agencies can issue regulations interpreting legislation, but courts will decide whether the agencies’ interpretation is lawful.

A group of health care organizations including the Bazelon Center for Mental Health Law, the American Cancer Society and the American Public Health Association wrote a letter defending Chevron in January.

The group stated that overruling Chevron would cause “tremendous disruption” to publicly funded health insurance programs, the stability of the U.S. health care system and the health and wellbeing of patients.

“Overruling Chevron would have enormous impact on the administration of federal programs – including Medicare, Medicaid, and CHIP – that are critical to public health,” the letter read.