Health Insurers May Sue if CMS Finalizes Obesity Drug Coverage Expansion
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Feb 27, 2025
In comment letters submitted to the federal government, health insurers warn — in so many words — that CMS could be facing lawsuits if it finalizes a rule that expands Medicare and Medicaid coverage of medications that treat obesity.
In fact, at least two comment letters from the health insurance industry point out that a recent Supreme Court decision makes it far easier for courts to determine that federal agencies have overstepped their authority.
“The absence of Chevron deference makes it easier for groups to challenge a regulation on the grounds that it fails to comport with the underlying law, even if under Chevron deference the regulation reflects a reasonable interpretation of the law,” explains Suhasini Ravi, a senior associate at the Center for Health Policy and the Law at Georgetown University’s O’Neill Institute.
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