Elon Musk’s Department of Government Efficiency (DOGE) is now investigating the Centers for Medicare and Medicaid Services (CMS). Musk’s post on X on February 5, 2025 stated, “Yeah, this is where the big money fraud is happening.”
CMS confirmed DOGE representatives have been granted “read-only” access to key payment and contracting systems. The probe, launched under Trump’s directive to identify government waste, comes as Dr. Mehmet Oz awaits Senate confirmation to lead CMS, and days after Robert F. Kennedy, Jr. received Senate panel approval to become the next secretary of the Department of Health and Human Services (HHS).
DOGE’s findings could trigger major changes to the healthcare industry. CMS manages $1.5 trillion in annual spending (22% of federal spending in 2024), And its largest programs, Medicare and Medicaid, provide health insurance to over 140 million Americans. HHS and CMS are also the primary enforcers of federal fraud and abuse laws, including the Anti-Kickback Statute and Stark Law.
CMS is by far the largest source of federal spending that DOGE has reviewed thus far. DOGE is also purportedly reviewing CMS’s structure and staffing, adding to the uncertainty. DOGE’s probe could reshape federal healthcare reimbursement to facilities and providers and alter fraud and abuse enforcement for years to come.
The regulatory team at Nichols Weitzner Thomas LLP will continue to closely monitor the developments . Please feel free to contact us with any questions on how these decisions could impact your business or practice.
