Health Agency Approach on Civil Penalties Shaken by High Court

Federal health agencies are expected to navigate with caution when issuing enforcement actions after a US Supreme Court ruling dealt a blow to their ability to leverage financial penalties, attorneys specializing in health law say.

The US Department of Health and Human Services, the Centers for Medicare & Medicaid Services, and the Food and Drug Administration are likely to face heightened challenges from hospitals, insurers, drugmakers, and others in the health-care orbit after the Supreme Court decision in SEC v. Jarkesy.

In that case, the court ruled that parties are entitled to a jury trial when the Securities and ...