Representatives of billionaire Elon Musk’s Department of Government Efficiency (DOGE) have turned their focus to the Centers for Medicare and Medicaid Services (CMS), the agency confirmed Wednesday.
It was unclear which systems DOGE had access to and whether any sensitive medical information was part of the efforts.
The Wall Street Journal reported earlier Wednesday that DOGE aides had been granted access to key payment and contract systems.
CMS did not respond to a request to clarify.
“CMS has two senior Agency veterans – one focused on policy and one focused on operations – who are leading the collaboration with DOGE, including ensuring appropriate access to CMS systems and technology,” the agency said in a statement. “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 is essentially the federal government’s insurance provider. The agency sets payments rates for doctors, hospitals and insurers, while also overseeing Medicare, Medicaid, the Children’s Health Insurance Program and the Affordable Care Act — programs that provide coverage for more than 150 million people.
CMS spent more than $1.5 trillion in 2024, around 22 percent of federal spending. Lawmakers often say the massive amount of spending on healthcare programs is rife with fraud and abuse, though bipartisan efforts to curb Medicare spending over the years have been met with political backlash.
Musk confirmed his interest in the health agency Wednesday, posting on X that Medicare was “where the big money fraud is happening.” He did not offer evidence.
DOGE aides have been fanning out across the federal government, exerting control of agencies as part of a mandate to cut at least $1 trillion in federal spending, most recently at the Treasury Department and the U.S. Agency for International Development. They have demanded, and received access to, highly sensitive information, raising alarms among Democrats and government employees.
Republicans have largely backed DOGE’s moves, calling them long-needed efforts to weed out fraudulent spending by federal officials.
“Obviously, everybody’s private health information needs to become private, but I think they need access and to see where we can be more efficient, effective. There’s a lot of money been spent by CMS,” House Energy and Commerce Committee Chairman Brett Guthrie (R-Ky.) told reporters Wednesday.
President Trump has nominated celebrity doctor and failed Senate candidate Mehmet Oz to lead CMS, but he has not been confirmed yet.
In a statement announcing his choice in November, Trump said Oz will “cut waste and fraud within our Country’s most expensive Government Agency, which is a third of our Nation’s Healthcare spend, and a quarter of our entire National Budget.”
