Department representatives have been on-site at CMS’ offices this week, examining spending data for potential fraud or waste and reviewing the agency’s organization and staffing, unnamed sources told the Journal.
DOGE representatives had not yet been granted access to databases that include personal health information of Medicaid and Medicare beneficiaries, the sources said. The DOGE representatives have “read only” access, meaning they cannot change any material viewed.
President Donald Trump created the Department of Government Efficiency, referred to as “DOGE” by officials, in November to cut wasteful spending and reduce operational inefficiencies. President Trump appointed Elon Musk, CEO of Tesla, SpaceX and X, to lead the initiative.
DOGE aims to cut federal spending by $1 trillion, with Medicaid emerging as a likely target, according to The New York Times.
CMS spent more than $1.5 trillion on healthcare programs in fiscal year 2024, accounting for 22% of total federal spending, according to the agency’s 2024 annual report.
“Yeah, this [CMS] is where the big money fraud is happening,” Mr. Musk wrote on X in response to the Journal’s article.
Other government agencies have pointed to wasteful spending in Medicaid and Medicare. A report from the Government Accountability Organization estimated in 2023, wasteful spending in Medicare and Medicaid totaled $100 billion.
DOGE representatives have also been working to cancel diversity, equity and inclusion-focused contracts at CMS, Bloomberg reported Feb. 5.
In a statement, 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.
Mehmet Oz, MD, President Trump’s pick to lead CMS, has not yet been confirmed by the Senate. Stephanie Carlton, RN, a former McKinsey consultant, is current acting administrator of the agency, according to its website. She is expected to be chosen as Dr. Oz’s chief of staff, if he is confirmed, according to the Post.
Officials from the White House and DOGE did not comment to the Journal.