Elon Musk's Department of Government Efficiency (DOGE) has initiated collaboration with the Centers for Medicare and Medicaid Services (CMS) to investigate potential fraud within payment and contracting systems, as per sources disclosed on Wednesday.
DOGE, under the Trump administration, has already made significant changes within the United States Agency for International Development (USAID). Musk, however, emphasized that Medicare and Medicaid are areas where substantial fraudulent activities are suspected to be occurring.
CMS is responsible for overseeing Medicare, which caters to health coverage for older and disabled Americans, and Medicaid, which provides insurance for over 140 million U.S. citizens with lower incomes.
Improper payments, which could indicate fraud or abuse, are regularly encountered by CMS. These payments may also result from administrative oversights by states, contractors, or healthcare providers.
Sources revealed that DOGE's associates have not been granted access to databases containing identifiable personal health information of Medicare or Medicaid beneficiaries.
Following the scrutiny of USAID, where 50 top officials were dismissed and the organization was merged into the State Department, DOGE has now turned its attention to CMS.
USAID, responsible for disbursing civilian foreign aid and development assistance globally, was described by Musk as a 'viper's nest.' The agency managed approximately $40 billion in appropriations in the previous year, according to the Congressional Research Service.
Secretary of State Marco Rubio, acting on an executive order from Trump, imposed a 90-day pause on all U.S. foreign assistance funded through the State Department and USAID. This pause has resulted in the suspension of numerous U.S.-funded humanitarian, development, and security programs worldwide, leading to layoffs in aid organizations due to financial constraints.
