The Hill reported on February 5th that Elon Musk’s Department of Government Efficiency (DOGE) is now focusing on the Centers for Medicare and Medicaid Services (CMS). The department, tasked with streamlining federal government agencies, has been confirmed to be approaching the Medicare and Medicaid Services Center.
The Wall Street Journal reported that the Department of Government Efficiency has received access to CMS’s payment and contract systems. CMS stated that it is exploring opportunities for effective and efficient use of resources in line with President Trump’s objectives.
As the federal government’s insurance provider, CMS sets payment rates for doctors, hospitals, and insurance companies. It manages Medicare, Medicaid, the Children’s Health Insurance Program, and the Affordable Care Act, providing insurance to over 150 million people. Last year, CMS spending exceeded $1.5 trillion, accounting for approximately 22% of federal expenditure.
Elon Musk has pointed out that large-scale fraud is occurring within Medicare. While Republicans support Musk’s moves, considering them necessary efforts to eliminate fraudulent spending by federal administrators, Democrats and government employees have expressed concerns about DOGE’s access to sensitive information.
President Trump has nominated celebrity doctor and failed Senate candidate Mehmet Oz as CMS administrator, though this appointment remains unconfirmed. Trump stated that Oz “will reduce waste and fraud within the most expensive government agency, which accounts for one-third of national healthcare spending and one-quarter of the total national budget.”
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