On Wednesday, February 5th, the Centers for Medicare and Medicaid Services (CMS) in the United States confirmed that the Government Efficiency Department (DOGE) led by billionaire Elon Musk has shifted its focus to the federal agency and has been granted access to its systems and technology.
In a statement released on Wednesday, CMS stated, “CMS has two senior agency veterans – one focusing on policy, the other on operations – who are leading the collaboration with the Government Efficiency Department, including ensuring appropriate access to CMS systems and technology.”
“We are taking a thoughtful approach to see where there may be opportunities to more effectively and efficiently utilize resources to achieve the goals of President Trump,” the statement added.
The Centers for Medicare and Medicaid Services essentially act as the federal government’s insurance provider, setting payment standards for doctors, hospitals, and insurance companies. They are also responsible for overseeing federal health insurance programs such as Medicare, Medicaid, the Children’s Health Insurance Program (CHIP), the Affordable Care Act (ACA), and health insurance marketplaces, providing healthcare coverage to over 150 million people through these programs.
CMS routinely deals with improper payments related to fraud or abuse, which may result from oversights by state governments, contractors, or providers in certain administrative processes.
In 2024, CMS expenditures exceeded $1.5 trillion, accounting for approximately 22% of federal spending. Despite efforts by both parties in the United States to contain healthcare spending over the years facing political backlash, lawmakers frequently criticize the significant spending by the government on federal healthcare programs for being rife with fraud and abuse.
On Wednesday, Elon Musk confirmed his interest in the federal agency. He posted on his social media platform X, stating that the federal healthcare programs are a “place of significant fraud.” However, he did not provide evidence to support his claim.
The U.S. Treasury Department stated on Tuesday that Musk’s team has been granted “read-only access” to CMS payment system codes but denied that this had disrupted any government payments, including Social Security or Medicare payments.