Back to the Future with Chevron Deference: A Discussion with Phillip Mullinnix, Partner at Nelson Mullins

Episode Date: August 28, 2024

In this episode of Stark Integrity, Phillip Mullinnix, Partner at Nelson Mullins, joins Bob Wade (Captain Integrity) to explore one of the most consequential legal developments in decades:

The end of Chevron deference.

Framed through a “Back to the Future” lens, this discussion examines how a foundational doctrine of administrative law has been overturned—and what that means for healthcare, compliance, and the regulatory landscape going forward.

What Was Chevron Deference?

Chevron deference originated from a 1984 Supreme Court decision and governed how courts reviewed federal agency interpretations of statutes.

Under Chevron:

• If a law was clear, courts followed Congress’s intent
• If a law was ambiguous, courts deferred to the agency’s reasonable interpretation

For nearly 40 years, this doctrine:

• Gave agencies significant interpretive authority
• Provided predictability in regulatory enforcement
• Shaped thousands of legal decisions

The key principle:

Agencies—not courts—often had the final say on ambiguous statutory language.

The Supreme Court’s 2024 Decision

On June 28, 2024, the U.S. Supreme Court overruled Chevron in a landmark decision.

The Court held:

• Courts must use independent judgment when interpreting statutes
• They may no longer defer to agency interpretations solely because a statute is ambiguous

This fundamentally shifts authority:

• From agencies → to courts

The reasoning:

It is the judiciary’s role—not the agency’s—to say what the law means.

Why This Is a “Back to the Future” Moment

The episode frames this development as a return to an earlier legal structure:

• Before Chevron, courts—not agencies—interpreted statutes
• After Chevron, agencies filled in gaps
• Now, post-2024, the system reverts back

In that sense:

The legal system is “time traveling” back to a pre-Chevron framework.

Immediate Implications

One of the most important themes in this discussion is:

Uncertainty.

With Chevron gone:

• Courts will decide more statutory interpretation issues
• Agency interpretations are no longer controlling
• Existing and future regulations may be challenged

This creates several near-term effects:

• More litigation
• More inconsistent rulings across jurisdictions
• Longer timelines for legal resolution

Prior Rulings: Are They Still Valid?

A key question raised in the episode is:

What happens to past decisions based on Chevron?

The answer:

• Prior decisions are not automatically overturned
• But the underlying reasoning may now be open to challenge

This creates a new dynamic:

Previously settled issues may be revisited.

Impact on Healthcare and Compliance

The healthcare industry—heavily regulated by agencies like:

• HHS
• CMS
• FDA

Will feel this shift significantly.

Without Chevron:

• Agency interpretations carry less authority
• Regulations become more vulnerable to legal challenges
• Courts may reinterpret key provisions affecting reimbursement, billing, and compliance

This will likely lead to:

• Increased challenges to CMS rules
• Greater scrutiny of regulatory guidance
• More uncertainty in enforcement frameworks

Expect More Litigation

A central takeaway from the episode is:

Litigation will increase—not decrease.

Because:

• Businesses have more opportunity to challenge regulations
• Courts now play a larger role in interpreting statutes
• Agencies must defend interpretations without automatic deference

This can lead to:

• Conflicting decisions across courts
• Delays in regulatory clarity
• Eventually, more cases reaching the Supreme Court

Expect More Detailed Legislation

Another key insight:

Congress may need to be more precise.

Under Chevron:

• Agencies could fill in gaps

Without it:

• Ambiguity invites litigation
• Courts—not agencies—resolve uncertainty

This may push Congress to:

• Draft more detailed statutes
• Reduce reliance on agency interpretation

The tradeoff:

Greater clarity—but potentially slower policymaking.

The Tradeoff: Expertise vs. Judicial Control

The episode highlights a fundamental tension:

• Agencies offer technical expertise
• Courts offer legal authority

Under Chevron:

• Expertise played a larger role

Now:

• Judicial interpretation takes precedence

This raises an important question:

Are courts equipped to decide highly technical regulatory issues?

Practical Compliance Considerations

For healthcare organizations and compliance professionals, the implications are significant:

• Do not rely solely on agency guidance as definitive
• Monitor regulatory developments and litigation closely
• Expect changes in how laws are interpreted
• Prepare for evolving compliance standards

Because:

Regulatory certainty is no longer guaranteed.

Key Takeaways

• Chevron deference governed administrative law for nearly 40 years
• It required courts to defer to reasonable agency interpretations
• The Supreme Court overturned Chevron in June 2024
• Courts now independently interpret ambiguous statutes
• Authority has shifted from agencies to the judiciary
• Expect increased litigation and regulatory uncertainty
• Healthcare will be significantly impacted due to heavy regulation
• Congress may need to draft more detailed legislation

Final Thoughts

This episode captures a pivotal shift in the legal landscape:

One of the most influential doctrines in administrative law is gone.

The end of Chevron deference represents:

• A redistribution of power
• A new era of judicial involvement
• A period of uncertainty

For compliance professionals, this means:

The rules are no longer as settled as they once were.

Organizations must adapt by:

• Staying informed
• Monitoring legal developments
• Remaining flexible in compliance approaches

Ultimately:

The future of regulatory interpretation is now in the hands of the courts.

And as this episode makes clear:

We may be heading “back to the future”—but the path forward will be anything but predictable.

Click here to listen to this Stark Integrity Podcast Episode:
https://podcasts.apple.com/us/podcast/back-to-the-future-with-chevron-deference/id1588939373?i=1000666856845&l=fr-FR