President Trump swore in Mehmet Oz as administrator of the Centers for Medicare and Medicaid Services (CMS) on Friday, giving the former TV personality enormous power over the country’s largest public health insurance program. Oz’s new responsibilities will include overseeing Medicare and Medicaid. He assumes the role as Medicaid risks dramatic cuts.
To pay for President Trump’s tax cuts, House Republicans are also proposing significantly reducing Medicaid funding.
The budget proposal requests that the Centers for Medicare & Medicaid Services oversight committee find $880 billion in cutbacks. The majority of which would probably come from Medicaid.
Oz seemed to agree with the Republican stance that Medicaid should only serve the demographic for which it was originally established, which includes pregnant women and disabled people. Since 2014, the Affordable Care Act has allowed states to provide Medicaid to all low-income people, not just specific demographics, and the program has expanded.
Toward the end of his Senate hearing, Oz responded to a question from Sen. Todd Young, R.-Ind., about how a healthier American population may help with rising healthcare expenses. “I think it is our patriotic duty to be healthy,” Oz said. It feels better, it’s the right thing for your family, he added, “but it also costs a lot of money to take care of sick people who are sick because of lifestyle choices.”
At another point during the hearing he told the senators: “For anyone in this committee who was able to go running or exercising for 20 minutes yesterday, you probably did the equivalent of reducing $100 billion of expenses for Medicare and Medicaid just by being active — if Americans would do that every day, that’s what we’d experience.”
He also proposed utilizing federal guidance to encourage patients to make healthy choices, such as teaching Medicare Advantage patients how to use their benefits for nutritional meals. This job is consistent with Health and Human Services Secretary Robert F. Kennedy Jr.’s “Make America Healthy Again” tagline, and Oz will report to him.
Given Oz’s wealth and status, some people described his views as insensitive. “There is no recognition that being able to afford groceries, let alone have time to cook them, is a prerequisite for achieving his version of ‘eating healthy,'” said author Virginia Sole-Smith.
Futhermore, in line with the administration’s goal of eliminating waste, fraud, and abuse, Oz stated that he will look into fraudulent practices within Medicaid, naming brokers who enroll patients in plans without their knowledge, funds spent on undocumented immigrants, individuals eligible for Medicaid in more than one state, and program funds used for nonmedical expenses such as child care.
Medicare’s future is less uncertain than Medicaid’s. Still, the program is in upheaval as an increasing number of seniors prefer the privatized version known as Medicare Advantage, which allows beneficiaries to choose commercial insurance plans that the government pays for rather than traditional, government-run Medicare.
Oz has created promotional videos for Medicare Advantage plans that are still available online and are not explicitly labeled as advertisements. He also co-wrote an opinion piece in 2020 stating that “Medicare Advantage for All” might give universal coverage for everyone, not just seniors, and “save our healthcare system.” According to his financial disclosures, he owns up to $600,000 in stock in UnitedHealth Group, one of the top Medicare Advantage insurers, but he had stated that if confirmed, he would divest that investment.
Medicaid and Medicaid are both essential programs for millions of Americans. Cutting funding for these programs in order to pay for tax breaks is wrong. People’s lives should be more important than money and politics.
Sources:
Benen, Steve. “Why Dr. Oz Shouldn’t Lead the Centers for Medicare and Medicaid Services.” MSNBC, NBCUniversal News Group, 26 Nov. 2024, http://www.msnbc.com/msnbc/amp/shows/maddow/blog/rcna181857.
Choi, Joseph. “Trump Swears in Mehmet Oz as CMS Administrator.” The Hill, The Hill, 19 Apr. 2025, thehill.com/homenews/5255977-trump-swears-in-mehmet-oz-as-cms-administrator/amp/.
Levi, Ryan. “Why Many Republicans Think Shrinking Medicaid Will Make It Better.” Tradeoffs, Tradeoffs, 23 Jan. 2025, tradeoffs.org/2025/01/23/gop-medicaid-cuts-trump/.
Simmons-Duffin, Selena. “5 Things to Know as Dr. Oz Prepares to Lead Medicare and Medicaid.” NPR, NPR, 3 Apr. 2025, http://www.npr.org/sections/shots-health-news/2025/03/25/g-s1-55766/dr-mehmet-oz-medicare-medicaid-cms-trump.