The CMS is working with the Department of Government Efficiency, a new federal office headed by billionaire Elon Musk that aims to slash government spending, the agency said Wednesday.
Two senior agency staffers, one focused on policy and the other on operations, are leading the collaboration with DOGE, according to the CMS’ statement.
The Wall Street Journal first reported Wednesday that DOGE staffers had been working at the CMS’ offices this week and had received access to key payment and contracting systems.
“We are taking a thoughtful approach to see where there may be opportunities for more effective and efficient use of resources in line with meeting the goals of President Trump,” the CMS said.
The CMS could be a big — and politically delicate — target for DOGE. The agency provides health coverage to more 160 million Americans through Medicare, Medicaid, the Children’s Health Insurance Program and the Affordable Care Act exchanges. Its outlays reached approximately $1.5 trillion in fiscal year 2024, or 22% of the federal total, and the agency employs more than 6,700 federal workers, according to the CMS.
The Wall Street Journal reported DOGE officials would focus on identifying what they consider possible fraudulent or wasteful spending within the agency. On Wednesday, Musk posted a screenshot of the report on X, saying, “Yeah, this is where the big money fraud is happening.”
DOGE’s work has already led to disruption in the federal government. The office targeted Treasury Department, before DOGE’s staffers were temporarily restricted from accessing information after a lawsuit alleged the access to personal data violated privacy laws.
The office has also upended work at the U.S. Agency for International Development, which provides humanitarian aid and assistance to other countries. Musk said earlier this week that President Donald Trump had agreed to shut down the agency.
DOGE’s scrutiny of the CMS comes as the nation’s healthcare programs have faced upheaval in the early days of the Trump administration.
Last week, the administration froze a large swatch of federal spending, locking states temporarily out of Medicaid payment portals — though the White House said the safety-net program shouldn’t have been affected.
The White House later rescinded the directive that began the funding pause. However, some Democrat senators say funds are still being blocked to some organizations, like Head Start child care programs.
