Elon Musk DOGE Targets Medicaid to Cut Waste

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Representatives from Elon Musk’s Department of Government Efficiency (DOGE) have shifted their focus to the Centers for Medicare and Medicaid Services (CMS), the agency confirmed on Wednesday.

While the extent of DOGE’s access to CMS systems remains unclear, there are concerns over whether sensitive medical data has been involved in the efforts.

Earlier reports by The Wall Street Journal suggested that DOGE officials had gained access to key payment and contract systems within CMS. The agency did not provide further clarification when approached for comment.

In a statement, CMS said, "Two senior Agency veterans – one overseeing policy and the other operations – are leading the collaboration with DOGE, ensuring appropriate access to CMS systems and technology. We are thoughtfully evaluating opportunities to enhance resource efficiency in line with President Trump’s goals."

CMS, which serves as the federal government's insurance provider, is responsible for determining payment rates for healthcare providers, insurers, and overseeing programs such as Medicare, Medicaid, the Children’s Health Insurance Program, and the Affordable Care Act. These programs collectively cover more than 150 million Americans.

The CMS budget exceeded $1.5 trillion in 2024, accounting for approximately 22% of total federal spending. Legislators have long expressed concerns about waste, fraud, and abuse within healthcare programs, although attempts at bipartisan Medicare reforms have often faced political resistance.

On the heels of the news, Musk voiced his concerns about waste within the Medicare system, calling it a hub for "big money fraud" in a post on X (formerly Twitter), though he did not provide any supporting evidence.

DOGE has been systematically overseeing federal agencies, driven by a mandate to reduce federal spending by $1 trillion. The initiative has extended to departments like the Treasury and USAID, where DOGE has sought and gained access to highly sensitive information. This has raised concerns among Democrats and government workers, though many Republicans support the initiative, praising it as a much-needed effort to address fraudulent spending.

"While everyone’s private health information must remain secure, I believe DOGE needs the access to identify where efficiencies can be gained," said House Energy and Commerce Committee Chairman Brett Guthrie (R-Ky.), referencing the significant spending by CMS.

President Trump has nominated Dr. Mehmet Oz, the celebrity doctor and former Senate candidate, to lead CMS. His confirmation, however, is still pending. In his announcement, Trump emphasized that Oz would work to eliminate waste and fraud within CMS, which represents one-third of the nation’s healthcare spending and a quarter of the entire federal budget.