Medicare Case Could Let Justices Rein in Federal Agencies (1)

The U.S. Supreme Court wrestled with a healthcare dispute that could end up with courts once and for all leaving federal agencies with less deference on thorny questions across all areas of law.

Tuesday’s oral argument focused on a technical question in a Medicare case. But looming larger was the simmering controversy over who should get the final word on interpreting ambiguous agency statutes—courts or the government.

The Supreme Court’s ruling, expected by July, could have “implications well beyond this case,” Justice Stephen Breyer said as the court heard the dispute over drug reimbursement rates the government pays to hospitals ...