MW Trump's choice of Dr. Oz to oversee Medicare and Medicaid could be 'devastating' for millions of Americans
By Jessica Hall
Mehmet Oz has been tapped to lead the federal agency in charge of a $1.5 trillion budget and the health insurance coverage for more than 155 million Americans
The selection of television personality Dr. Mehmet Oz to run the Centers for Medicare and Medicaid Services could bring on budget cuts, the privatization of Medicare and reduced benefits for the nation's most vulnerable citizens, public-health and government experts say.
CMS, the federal agency in charge of a $1.5 trillion budget and the health-insurance coverage for more than 155 million Americans, oversees Medicare, Medicaid, the Children's Health Insurance Program and the Health Insurance Marketplace. If Oz is confirmed by the Senate, he would be responsible for a health agency that has about 6,500 employees.
"Nominating a person who has promoted unproven medical treatments for personal gain, opposed the Affordable Care Act and supports the further privatization of Medicare to oversee the healthcare for millions of people, including seniors, will have devastating consequences," said Tony Carrk, executive director of government watchdog Accountable.US.
"President-elect Trump is helping his friends, but the rest of us get higher costs, less coverage, and weakened protections - especially those with pre-existing conditions," Carrk said.
As of 2022, Dr. Oz and his wife owned up to $600,000 in UnitedHealth Group $(UNH)$ stock and up to $100,000 in shares of CVS Health $(CVS)$, which owns Aetna, according to Accountable.US. Both companies are large Medicare Advantage providers. Medicare Advantage is a private-company alternative to traditional Medicare.
The nomination of Oz comes amid other notable cabinet picks, including fossil-fuel executive Chris Wright as energy secretary, Rep. Matt Gaetz as attorney general, Tulsi Gabbard as director of national intelligence, and professional wrestling mogul Linda McMahon to be secretary of education.
What's more, next year Congress will need to decide on whether to renew expiring tax credits for Americans to purchase insurance from health-insurance marketplaces. It may also choose to make changes to the Medicaid program or to the Inflation Reduction Act's provisions which reduce prescription drug costs, said Anand Parekh, the chief medical advisor at the Bipartisan Policy Center.
"The CMS administrator will be required to implement any new legislation on these fronts, several of which could negatively impact beneficiary access to care and increase the uninsured rate in this country," Parekh said.
In making the announcement of Oz's nomination, Trump said Oz would "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."
The Government Accountability Office has cited Medicare and Medicaid programs as being at high risk of waste, fraud and abuse, said Mary Johnson, an independent Medicare and Social Security analyst.
During Trump's first term as president, an audit by the inspector general of the Department of Health and Human Services found that CMS failed to properly manage governmental functions, such as strategic communications, and hired outside consultants totaling more than $6 million that fell to taxpayers.
Oz, who trained as a cardiothoracic surgeon and became a television personality after rising to fame as a frequent Oprah Winfrey guest, ran a failed campaign for Senate in 2022 in Pennsylvania. He lost to Sen. John Fetterman, a Democrat. Fetterman said he'd vote to confirm Oz if he promised to "protect and preserve" Medicare and Medicaid.
Critics slammed Oz's medical views, such as promoting antimalarial drug hydroxychloroquine in the early days of the pandemic as a way to treat COVID-19 despite the lack of firm scientific evidence.
Lawrence Gostin, faculty director of the O'Neill Institute for National and Global Health Law at Georgetown University, wrote on X that Oz was "unfit" to run CMS.
"He peddles conspiracy theories on vaccines & fake cures. He profits from fringe medical ideas. By nominating RFK Jr & Mehmet Oz, Trump is giving his middle finger to science," Gostin said on X, formerly known as Twitter.
Johnson agreed it was difficult to trust Oz.
"Leadership requires trust of those being led. How are we to trust anyone who spread misinformation including fake COVID cures that put the lives of millions at risk during the pandemic?" Johnson said.
"Any director of CMS would need to lead arguably the two most complicated government-run programs out there. The next CMS director would deal not only with doctors, hospitals and healthcare providers, but also insurers, as well as beneficiaries, who often know very little about how the programs are supposed to work," Johnson said.
Privatizing Medicare?
"Dr. Oz's past policy positions suggest he'd be strongly in favor of the Project 2025 plan to make Medicare Advantage - privatized Medicare - the default for all Medicare enrollees," said Andrea Ducas, vice president of health policy at the Center for American Progress.
"Such a policy would be a multibillion-dollar giveaway to corporations that limits older Americans' healthcare choices while putting Medicare's future at risk. Medicare Advantage is in need of major reform, not unchecked expansion," Ducas said.
Shannon Benton, the executive director of the Senior Citizens League, an advocacy group, said she feared that Oz could limit health coverage by cutting eligibility requirements.
"Dr. Oz could make life worse for vulnerable populations by implementing policies that reduce access to care or benefits - for example, cutting Medicaid eligibility or limiting coverage for essential services," Benton said.
"Reductions in payment rates to healthcare providers might result in fewer services or longer wait times. Additionally, changes that increase out-of-pocket costs for Medicare beneficiaries could make healthcare more unaffordable for seniors," Benton said.
Still, Benton said there may be some potential positives to having Oz as director of CMS.
"As a well-known figure, Dr. Oz could draw attention to important health issues and raise awareness about the challenges faced by vulnerable populations, potentially influencing public opinion and policy discussions," Benton said. "Given his background in health and wellness, he might prioritize preventive care, which could improve health outcomes in the long term and reduce Medicare and Medicaid costs."
Others had more doubts.
"The Centers for Medicare & Medicaid Services is a workhorse agency. It helps ensure access to healthcare for millions of Americans, including our nation's seniors, our children and the poorest Americans," Rep. Frank Pallone, Jr., D-N.J., ranking member of the House Energy and Commerce Committee, said in a statement.
"Given the crucial importance of this agency, I am alarmed that President-elect Trump has chosen a TV celebrity without the experience or background to lead it. Unfortunately, this nomination further demonstrates that Trump is not concerned about Americans' healthcare," Pallone said.
-Jessica Hall
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(END) Dow Jones Newswires
November 20, 2024 16:34 ET (21:34 GMT)
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