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Dr. Oz Proposes Medicaid Expansion Cuts, Citing Cost Inefficiencies

CMS administrator argues for reducing the federal match rate for ACA Medicaid expansion enrollees, raising concerns about coverage losses for millions.

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, head of CMS, advocates reducing the 90% federal match rate for Medicaid expansion enrollees to address funding disparities with traditional Medicaid beneficiaries.
  • He claims at least $1 billion—and potentially up to $10 billion—is wasted annually due to individuals being enrolled in Medicaid across multiple states.
  • Oz emphasizes that U.S. health care spending is double that of other developed nations, yet life expectancy remains five years lower, highlighting inefficiencies in care delivery.
  • Experts warn that cutting Medicaid expansion funding could lead to over 20 million people losing coverage, with significant financial and health system repercussions for states.
  • Any proposed changes to Medicaid funding would require congressional action, facing legal, political, and bipartisan opposition due to the potential impact on vulnerable populations.