DOGE Launches Access Initiative Targeting Medicare Fraud

Feb. 11, 2025, 11:17 am ET

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30-Second Take

  • The Department of Government Efficiency (DOGE), led by Elon Musk, is scrutinizing Medicare and Medicaid for fraud and waste.
  • DOGE has gained read-only access to key systems within the Centers for Medicare and Medicaid Services (CMS).
  • This move has sparked concerns among healthcare providers and patient advocacy groups.

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Essential Context

DOGE, created by President Trump on January 20, 2025, aims to reduce federal spending. It has already saved over $1 billion by canceling diversity, equity, and inclusion contracts and other expenses.

Core Players

  • Elon Musk – Leader of DOGE, special government employee
  • Kim Brandt – CMS Deputy Administrator and Chief Operating Officer
  • John Brooks – CMS Deputy Administrator and Chief Policy and Regulatory Officer
  • Centers for Medicare and Medicaid Services (CMS)
  • Treasury Department

Key Numbers

  • $1.5 trillion – Annual health spending managed by CMS
  • $1 billion – Savings claimed by DOGE from canceled contracts
  • 160 million – Number of Americans covered by CMS programs
  • 6,710 – Number of federal employees at CMS

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The Catalyst

DOGE’s scrutiny of Medicare and Medicaid comes as part of its broader mission to cut federal spending and eliminate what it deems as “waste and fraud.” This initiative was kicked off on January 20, 2025, with Elon Musk at the helm.

Musk has stated, “Yeah, this is where the big money fraud is happening,” in response to reports of DOGE’s activities at CMS.

Inside Forces

Two Trump health appointees, Kim Brandt and John Brooks, are leading CMS’s collaboration with DOGE. Brandt, a former healthcare lobbyist, is CMS’s Deputy Administrator and Chief Operating Officer, while Brooks, who ran a health consulting firm, is the Deputy Administrator and Chief Policy and Regulatory Officer.

These officials are ensuring that DOGE has appropriate access to CMS systems and technology, focusing on rooting out fraud and waste without accessing personal health information of Medicare or Medicaid enrollees.

Power Dynamics

DOGE’s involvement has raised significant concerns among healthcare providers and patient advocacy groups. Critics argue that Musk’s role could pose conflicts of interest, given his businesses receive billions in government contracts.

Sen. Elizabeth Warren has warned that providing DOGE with access to the Treasury Department’s payment system risks “missteps that could result in a global financial meltdown.”

Outside Impact

The broader implications of DOGE’s actions extend beyond CMS to other federal programs. The task force has also targeted the U.S. Agency for International Development (USAID) and the Social Security Administration, prompting fears about the potential disruption of critical services.

Lawsuits have been filed against the Treasury Department for allegedly unlawfully providing DOGE with access to personal data of most U.S. taxpayers.

Future Forces

As DOGE continues its review, stakeholders are left with many unanswered questions. The legal authorities and administrative processes that will govern DOGE’s actions remain unclear, as do the avenues for healthcare providers and other affected parties to respond to any adverse actions.

The future of Medicare and Medicaid under DOGE’s scrutiny will depend on how effectively the task force navigates these complex systems without compromising the healthcare services they provide.

Data Points

  • January 20, 2025: DOGE was created by President Trump.
  • $1.5 trillion: Annual health spending managed by CMS.
  • 160 million: Number of Americans covered by CMS programs.
  • 6,710: Number of federal employees at CMS.
  • $36 trillion: Current federal debt.

The intersection of DOGE’s cost-cutting initiatives and the complex healthcare landscape promises significant changes ahead. As the task force continues to scrutinize federal programs, the impact on Medicare, Medicaid, and other essential services will be closely watched.