WASHINGTON, D.C. – Elon Musk, leading the Department of Government Efficiency (DOGE) under President Trump’s administration, has reported the discovery of approximately $100 billion in wasteful spending within the Centers for Medicare & Medicaid Services (CMS). This finding emerged after DOGE was granted read-only access to CMS’s payment and contracting systems, which manage health insurance for about 25% of Americans.
CMS has confirmed that two senior agency veterans are collaborating with DOGE to identify opportunities for more effective and efficient use of resources, aligning with the administration’s efficiency agenda.
Musk’s team has been reviewing CMS’s payment and contracting systems, which are crucial for managing health insurance for approximately one in every four Americans. CMS processes over a billion Medicare claims annually, oversees healthcare quality through inspections, and disburses significant funds to states for Medicaid programs.
Medicare currently covers about 68 million Americans, primarily those over 65 and individuals with disabilities, while Medicaid serves approximately 73 million low-income citizens.
From June through October 2024, CMS suspended 850 agents and brokers’ Marketplace Agreements due to suspicions of fraudulent or abusive conduct related to unauthorized enrollments or plan switches. These individuals are now prohibited from participating in Marketplace enrollment and receiving related commissions.
In June 2024, the Department of Justice announced charges against 193 defendants, including 76 medical professionals, for their alleged involvement in fraudulent schemes amounting to approximately $2.75 billion in false claims.
These developments underscore ongoing concerns about waste and fraud within federal healthcare programs, highlighting the need for continued oversight and reform to ensure the efficient use of taxpayer funds.
