Dive Brief:
Dr. Mehmet Oz was sworn in as CMS administrator on Friday, cementing his role as head of the agency that provides insurance coverage to millions of Americans.
During a ceremony at the Oval Office, Oz, a physician and former TV personality, said he wanted to “save” the nation’s public health programs and focus on reducing chronic disease, “modernizing” Medicare and Medicaid, and targeting fraud, waste and abuse in government insurance offerings.
President Donald Trump reiterated that Republicans wouldn’t cut Medicare or Medicaid. “Just as I promised, there will be no cuts. We’re not going to have any cuts. We’re going to have only help,” he said during the ceremony.
Dive Insight:
Oz was confirmed by the Senate in a 53 to 45 vote along party lines earlier this month to lead the CMS. Democrats had raised concerns about his previous advocacy for expanding Medicare Advantage, though Oz vowed to scrutinize the program during a confirmation hearing in March.
Some lawmakers were also worried about potential cuts to Medicaid, the safety-net insurance program that covers nearly 80 million Americans alongside the Children’s Health Insurance Program, under his tenure. Oz largely dodged questions about whether he would support reducing funding to Medicaid during the hearing, but did say he would support work requirements.
Meanwhile, potential Medicaid cuts have become a major concern for the healthcare sector in the early days of the Trump administration.
Earlier this month, Congress adopted a budget blueprint that calls for the House Energy and Commerce Committee, which oversees Medicare and Medicaid, to find $880 billion in savings as Republicans look to balance out the impact of Trump’s promised tax cuts and increase funds for defense and border security.
Though the resolution doesn’t spell out which programs could be affected, the Congressional Budget Office reported in March that the spending target likely couldn’t be reached without cuts to healthcare programs.
Reducing spending on Medicaid to pay for tax cuts is unpopular with most voters — including those that voted for Trump — and could be a drag on hospitals’ bottom lines.
Republicans have lately said they wouldn’t cut Medicaid, and instead will target fraud, waste and abuse in government healthcare programs. During the ceremony Friday, Oz said some people have been fraudulently enrolled in Affordable Care Act exchange health plans, for example, and states have used Medicaid funds to pay for non-medical purposes.
Under Oz, the CMS has already alerted states that it wouldn’t approve or extend requests for federal funding for certain state health programs that aim to address social determinants of health.
“Medicaid is the number one budget item for many states, and it is crowding out education, other important social programs,” Oz said. “The states are having a big problem, and that’s with the federal government paying most of the bill.”
