The Centers for Medicare & Medicaid Services (CMS) confirmed that two senior employees are working in collaboration with representatives from Elon Musk’s Department of Government Efficiency (DOGE).
Musk, a multi-billionaire who the White House recently named a special government employee, has been tasked with improving government efficiency.
CMS said the two agency veterans are focused on policy and operations and are leading the collaboration with DOGE, including ensuring appropriate access to CMS systems and technology.
“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,” CMS said in a statement.
CMS had outlays of approximately $1.5 billion in fiscal year 2024, which is 22 percent of total federal outlays, according to the agency’s annual financial report. It has approximately 6,710 federal employees but does most of its work through third parties to provide health care to 160 million Americans via Medicare, Medicaid, the Children's Health Insurance Program, and Affordable Care Act exchanges. CMS and its contractors process over one billion Medicare claims each year and provide states with matching funds for Medicaid benefits.
DOGE representatives have been at CMS this week, according to The Wall Street Journal, which first reported the news. The publication said that DOGE is focusing on fraud and waste within the system and looking at the system’s technology, spending, the agency’s organizational design, and staffing.
Musk posted on his X platform, “Yeah, this is where the big money fraud is happening,” in response to a user who posted the headline of The Wall Street Journal article.
The Department of Health and Human Services (HHS) Office of Inspector General (OIG) is tasked with oversight of HHS programs, including CMS, and fighting fraud and abuse within the system. At RISE National 2023, former Inspector General Christi A. Grimm warned attendees that the risk of fraud, waste, and abuse in Medicare Advantage by plans, providers, and vendors is significant and they should be prepared for more enforcement. Grimm was fired in late January, along with other inspectors general in federal government programs.
Modern Healthcare reports that DOGE has gained access to CMS payment and contracting systems and have been working to cancel diversity, equity, and inclusion-focused contracts at CMS and HHS. A source told the Wall Street Journal that DOGE has not yet been given access to personal health information of Medicare or Medicaid enrollees, or the Healthcare Integrated General Ledger Accounting System.