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4d ago

Dr. Oz Advocates Medicaid Funding Cuts, Highlights Systemic Waste

CMS Administrator Dr. Mehmet Oz proposes reducing federal Medicaid expansion funding, citing inefficiencies and waste, as congressional debates loom over potential health care reforms.

Newly sworn in Medicare and Medicaid Services Administrator Dr. Mehmet Oz speaks during a ceremony in the Oval Office at the White House on April 18, 2025 in Washington, DC.
File photo: Dr. Mehmet Oz speaks during his swearing in ceremony to be Administrator of the Centers for Medicare and Medicaid Services, in the Oval Office of the White House, Friday, April 18, 2025, in Washington.
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Overview

  • Dr. Mehmet Oz, CMS Administrator, has proposed lowering the federal match rate for Medicaid expansion enrollees, currently set at 90%, to address budgetary concerns.
  • Oz identified $1–$10 billion in waste from individuals enrolled in Medicaid across multiple states, calling for stricter oversight to eliminate inefficiencies.
  • He criticized U.S. health care costs and outcomes, noting Americans spend twice as much as Europeans while experiencing lower life expectancy and poorer quality care.
  • More than 20 million people have gained coverage through ACA Medicaid expansion, but potential funding cuts could put their benefits at risk, especially in states with laws tied to federal funding thresholds.
  • Congress faces pressure to find $880 billion in savings, with Medicaid reform likely to become a contentious issue in upcoming legislative debates.