The Centers for Medicare and Medicaid Services (CMS) in its proposal to require drug prices in TV advertisements also works to make the case that it has legal authority to enforce the policy.
Medicare policy expert Bruce Quinn in a Discoveries in Health Policy blog post notes that the CMS in its proposal states it “has concluded that the proposed rule has a clear nexus to the Social Security Act.”
Section 1102(a) of the Social Security Act gives CMS the authority to make “such rules and regulations … as may be necessary to the efficient administration of functions” under the SSA, while section 1871(a) permits CMS to “prescribe such regulations as may be necessary to carry out the program.”
“Many pages of the regulation read exactly like a court case legal brief, citing a dizzying range of court cases and precedents,” Quinn writes. “For example, Massachusetts Law 94 295C requires retail dealers of motor fuel to publicly display on each pump the price per gallon.”