President-elect Donald Trump on Tuesday nominated Mehmet Oz, a well-known doctor and former Senate candidate, to head the Centers for Medicare and Medicaid Services (CMS).
Trump-Vance's transition team praised Oz as the most “qualified and capable doctor” to “make America healthy again.”
The statement reads: Oz would work closely with Robert F. Kennedy, Jr. to confront the disease-industrial complex and all the terrible chronic diseases left in its wake. ”
The new CMS administrator will focus on two areas, the statement said. The first is to “encourage disease prevention” to “get the best results in the world for every dollar we spend on health care in our great nation.” The second goal is to “reduce waste and fraud” within America's “broadest government agency,” which consumes a quarter of the entire federal budget.
Accusations of fraud and waste at CMS likely stem from concerns about improper payments, overbilling, and inefficiencies within programs such as Medicare and Medicaid. These allegations have been raised for decades by audits, investigations, and reports from watchdogs.
From TV personality to medical administrator
Dr. Mehmet Oz, 64, is nationally known as the host of “The Dr. Oz Show,” which combines mainstream medical advice with more holistic health recommendations and “unapproved” treatments. Now you can For example, during the coronavirus pandemic, Dr. Oz emerged as an influential figure, appearing frequently on Fox News and promoting the use of hydroxychloroquine as a treatment for the coronavirus. This stance resonated with then-President Trump's position, and Oz reportedly became an informal advisor to the Trump administration during that period.
Oz entered politics in 2022 after an unsuccessful bid for the Pennsylvania Senate, where he championed a Medicare Advantage for All plan that would expand a privatized version of Medicare.
Benefits for everyone?
As a candidate for the U.S. Senate, Dr. Oz is an audacious advocate for the U.S. health care system through the “Medicare Advantage for All” plan, which aims to replace “traditional” Medicare with a privatized plan based on the Medicare Advantage framework. A review was proposed. Mr. Oz advocated universal enrollment in these plans, which are run by private insurance companies but funded by the government.
To fund the initiative, then-candidate Oz proposed a 20 percent payroll tax. He argued that this approach would reduce administrative costs, increase coverage and provide a more efficient health system.
As The Lever reported at the time, critics cited studies showing that Medicare Advantage's cost per enrollee was already higher than government-run Medicare, and that the plan would drive up overall costs. He said it was possible. Additionally, a government report found that Medicare Advantage plans have a history of denying needed care and raising premiums. Finally, the proposed payroll tax could “hit workers far harder than the Medicare for All plan proposed by Sen. Bernie Sanders,” providing relief to the wealthy while reducing the It was criticized for potentially affecting middle-income workers.
Oz has come under further scrutiny after reports of financial ties to major insurance companies, including UnitedHealth Group and Aetna, which profit heavily from Medicare Advantage. The plan is positioned as a market-driven alternative to a single-payer system, but opponents question its affordability and impact on seniors.
Oz and Big Pharma
Dr. Mehmet Oz's ties to the pharmaceutical industry raise further concerns about potential conflicts of interest as he prepares to take on the role of CMS administrator.
His 2022 Senate campaign's financial disclosures reveal significant investments in companies such as Thermo Fisher Scientific and major pharmaceutical distributor McKesson Corporation, with stock holdings worth hundreds of thousands of dollars. do.
In addition to investments, Oz has long-standing ties to the pharmaceutical industry through media ventures and nonprofit organizations. His website previously listed companies such as Aventis (now Sanofi), Bayer, and Novartis as corporate partners. There is a significant risk that these connections could influence his decisions at CMS, particularly in areas such as drug price negotiations and Medicare reimbursement policy, where Big Pharma has a significant financial stake. There is a possibility.
mixed reaction
Oz's nomination has drawn both support and criticism from various quarters.
RFK Jr., who was selected to lead the Department of Health and Human Services (HHS) last week, expressed his “excitement” over the “outstanding” appointment.
Sen. Bill Cassidy (R-Louisiana), incoming chairman of the Senate Health, Education, Labor, and Pensions Committee (HELP), welcomed the nomination and said, “We will help patients and implement conservative health care reform. It's a great opportunity to do that.” ”
Additionally, Mary Beth Donahue, president of the Better Medicare Alliance, an insurance company-backed advocacy group, said: Oz recognizes the value of Medicare Advantage and the high-quality, affordable, and comprehensive health care it provides to more than 34 million seniors and people with disabilities. ”
The more skeptical wing of the Conservative Front recalled Oz's push for coronavirus vaccines and booster immunizations.
Previously, Dr. Oz also advocated a Chinese-style coronavirus lockdown.
Others believe that Oz is a red flag law, meaning that law enforcement, family members, and other individuals can petition a court to temporarily remove firearms from someone they believe poses a serious danger to themselves or others. He pointed out that he supports legislation that recognizes this.
Further complaints related to Oz's past support for transgender surgeries on children.
Republican Health Care Evolution
Oz's nomination symbolizes a shift in the Republican Party's stance on Medicare and Medicaid. Historically, Republicans have criticized the program, which was introduced in the 1960s under President Lyndon B. Johnson's Great Society initiative. Many conservatives initially viewed Medicare and Medicaid as costly expansions of government. At the time, they criticized Medicare as a step toward “socialized medicine.” President Ronald Reagan said it could mean “carrying our twilight years to our children…what America was like when men were free.” I warned you.
At the same time, critics such as Dr. Edward R. Annis of the American Medical Association (AMA) predicted that the program would “degrade the quality and availability” of health care across the United States.
By the 1990s and early 2000s, Republican strategy shifted toward reforming these programs rather than opposing them outright. Key moments include Medicare Advantage, introduced in 2003 under President George W. Bush; It provides seniors with a privatized alternative to government-run Medicare. President Bush also signed the Medicare Prescription Drug Improvement and Modernization Act, which added a prescription drug benefit (Part D) and welcomed private insurance companies as partners, ostensibly to reduce costs.
In recent years, Republicans have leaned more toward privatization and cost-cutting measures. Proposals to implement Medicaid work requirements and block grants to states reflect an emphasis on fiscal responsibility and local control. The first Trump administration doubled down on these efforts, advocating for state-level Medicaid flexibility and defending Medicare Advantage against regulatory changes.
In his latest platform, President Trump vowed to “fight for and protect Social Security and Medicare without making any cuts, including changing the retirement age.”
