Elon Musk's Department of Government Efficiency (DOGE) has gained access to key systems within the Centers for Medicare and Medicaid Services (CMS), giving his team insight into one of the most complex and financially significant areas of the U.S. healthcare system. The move, first reported by The Wall Street Journal, is part of a broader effort under President Donald Trump's administration to restructure federal agencies and eliminate what it deems wasteful spending.
DOGE's involvement in CMS includes reviewing its technology and organizational structure, with an agency spokesperson confirming that two senior officials-one in policy and another in operations-are leading coordination with Musk's team. DOGE has reportedly been granted read-only access to CMS payment and contracting databases but has not yet been given access to sensitive personal health data of Medicare and Medicaid enrollees.
Musk publicly acknowledged the initiative on X, writing, "Yeah, this is where the big money fraud is happening," in reference to DOGE's entry into the Medicare system. CMS has not disclosed which specific databases are being reviewed or how long the investigation is expected to last.
The initiative comes amid a broader push by DOGE to review federal agencies for inefficiencies. The team has also made visits to the Centers for Disease Control and Prevention (CDC) and, according to The Washington Post, sought sensitive information from multiple agencies, including the Department of Labor. While the stated goal is to identify waste and fraud, the lack of transparency regarding the process has raised concerns among government officials and watchdog groups.
The access to CMS data is significant due to the agency's central role in the U.S. healthcare economy. CMS oversees a nearly $2 trillion budget, administers Medicare and Medicaid benefits, and runs the National Institutes of Health, the largest biomedical research institution in the world. Medicare itself has been a point of contention in discussions over government waste, with some analysts arguing that overpayments to private Medicare Advantage plans have led to excessive spending.
Chris Meekins, managing director at Raymond James, noted in a client report that the definition of waste or abuse "is really in the eye of the beholder." He pointed out that while some policymakers argue Medicare is overpaying insurers, others believe the system is functioning as intended.
Conservative health policy advocates have welcomed Musk's involvement, with Brian Blase, president of the Paragon Health Institute, telling Axios, "It is a no-brainer for DOGE to focus on problems in this area and it's long overdue." Meanwhile, government oversight officials caution that federal agencies already have systems in place to detect and recover misspent funds. According to the Department of Health and Human Services, inspectors recovered $7.13 billion in misspent taxpayer funds in fiscal year 2024, with the Justice Department securing an additional $1.7 billion in settlements and judgments related to healthcare fraud.
The push into Medicare coincides with DOGE's planned involvement in the Federal Aviation Administration (FAA). Transportation Secretary Sean Duffy stated that DOGE will "plug in to help upgrade our aviation system," a claim Musk echoed on X, saying his team aims to make "rapid safety upgrades" to the country's aging air traffic control infrastructure. However, Politico reported that details on the scope of DOGE's role in the FAA remain unclear, particularly given the complexity of the agency's software, hardware, and operational networks.
Musk's expanding influence over federal agencies has sparked protests across the country, with thousands gathering in cities and state capitals on Wednesday to oppose what they see as an unprecedented consolidation of power. Critics argue that an unelected billionaire should not have unchecked access to government systems, particularly in areas as sensitive as healthcare and aviation.
