Photo: Trevor Cokley/U.S. Air Force via Wikimedia Commons
The federal Department of Government Efficiency led by Elon Musk, which is referred to as DOGE, is training its sights on the Centers for Medicare and Medicaid Services. DOGE representatives have been on site at the agency to examine spending data for potential fraud or waste and review the agency's organization and staffing, The Wall Street Journal reported.
The DOGE team requested access to CMS systems, which manage more than $1 trillion in annual payments, in early February. The request is part of a plan to cut federal spending by $1 trillion, with Medicaid cuts likely. CMS spent more than $1.5 trillion on health-care programs in fiscal year 2024, accounting for 22 percent of total federal spending, according to the agency's 2024 annual report. "Yeah, this is where the big money fraud is happening," Musk posted on X.
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Other government agencies have pointed to wasteful spending in Medicaid and Medicare. A report from the Government Accountability Office estimated that wasteful spending in Medicare and Medicaid totaled $100 billion in 2023.
CMS also oversees Affordable Care Act programs, including HealthCare.gov and the state-based ACA exchange programs, such as Covered California.
Dr. Mehmet Oz, President Trump's nominee to lead CMS, has not yet been confirmed by the Senate. CMS said two senior staff members, one focused on policy and one on operations, are working with DOGE representatives and ensuring "appropriate access" to the agency's 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 agency said.
Meanwhile, attorneys general from 19 states plan to file a lawsuit over the DOGE’s access to payment systems that contain Americans' "sensitive personal information."
“This level of access for unauthorized individuals is unlawful, unprecedented and unacceptable,” New York Attorney General Lettia James said. “DOGE has no authority to access this information, which they explicitly sought in order to block critical payments that millions of Americans rely on -- payments that support health care, childcare and other essential programs.”
Joining New York in the lawsuit are attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, North Carolina, New Jersey, Oregon, Rhode Island, Vermont and Wisconsin.
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Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
