The Sun Is About to Set on the Controversial Trump Era “SUNSET” Rule

As part of its wider strategy to free business from cumbersome regulation, the Trump administration adopted a rule that would have imposed a Hobson’s choice on the Department of Health and Human Services (HHS): Eliminate existing regulations after 10 years or conduct a full review and present a clear and convincing case for keeping the rule in place. But, in an action that illustrates that presidential elections have real significance, the HHS has served notice that it plans to repeal the so-called SUNSET rule (short for Securing Updated and Necessary Statutory Evaluations Timely).

The rise and setting of the SUNSET rule

The controversial nature of the SUNSET rule stems not merely from its ruthless and broad approach to what most deem necessary health care regulations, but also the hasty way HHS put it into place during the final days of the Trump regime. The rule, which the overwhelming majority of the more than 500 parties that submitted public comments opposed, was slated to take effect March 22, 2022. However, HHS postposed implementation by one year, after a coalition of health care organizations, including the American Hospital Association (AHA), sued HHS to stop its implementation. “The rule does not even specify which of the Department's 18,000 existing regulations are exempted under the limited exceptions,” according to the complaint. “In other words, the outgoing administration planted a ticking time bomb set to go off in five years unless HHS, beginning right now, devotes an enormous amount of resources to an unprecedented and infeasible task."

The sunset of the SUNSET rule

The Oct. 28 HHS notice pretty much spells the demise of SUNSET. HHS contends that implementing the rule “would significantly alter the operations of HHS with considerable repercussions for a diverse array of stakeholders." The proposal calls for withdrawing or repealing the rule in its entirety, claiming that doing so would save the department $75.5 million annually.