Trump selects Dr. Oz as CMS administrator

President-elect Donald Trump has appointed Mehmet Oz, the well-known celebrity physician and TV personality referred to as Dr. Oz, to the position of administrator of CMS.

Trump selects Dr. Oz as CMS administrator
President-elect Donald Trump has appointed Mehmet Oz, the well-known physician and television personality recognized as Dr. Oz, as the administrator of the Centers for Medicare & Medicaid Services.

Throughout the pandemic, Dr. Oz, 64, promoted unverified theories regarding Covid-19 treatments, including hydroxychloroquine, which captured Trump's attention. In 2022, Oz ran an unsuccessful campaign for the U.S. Senate in Pennsylvania, losing to the current Senator John Fetterman.

“Dr. Oz will work closely with Robert F. Kennedy Jr. to take on the illness industrial complex, and all the horrible chronic diseases left in its wake,” Trump stated on Tuesday. “Dr. Oz will be a leader in incentivizing Disease Prevention, so we get the best results in the World for every dollar we spend on Healthcare in our Great Country.”

This appointment continues Trump's trend of selecting television personalities for crucial administration positions, similar to his choices of Pete Hegseth for defense secretary and Doug Collins for VA secretary. According to a source who wished to remain anonymous, Oz was not initially considered among the leading candidates for the role. Paul Mango, a former senior HHS official, was a strong contender, but he lacked support from Kennedy, as revealed by another informed individual.

Oz has been a vocal advocate for Medicare Advantage, the Medicare-approved private option that has gained traction but faced heavy criticism regarding care denials and alleged overbilling. His Senate campaign featured a “Medicare Advantage for All” proposal aimed at expanding the program.

“These plans are popular among seniors, consistently provide quality care and have a needed incentive to keep costs low,” Oz mentioned in an AARP candidate questionnaire. In August, he shared a YouTube video with his nearly 2 million subscribers discussing “the benefits of enrolling” in Medicare Advantage.

As administrator, Oz would hold significant authority over Medicare Advantage policies, including reimbursement processes for these plans. Some hospitals and health systems have opted out of these plans due to issues with payment delays and care denials.

The Biden administration has been engaged in contentious discussions about Medicare Advantage payment rates. Trump and insurance representatives have accused the administration of reducing payments, while CMS has defended the adjustments as necessary changes reflecting the health of the insured demographic. This year, MA plans have reduced their offerings, citing financial strains.

“Dr. 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 individuals with disabilities,” remarked Mary Beth Donahue, president of the insurer-backed advocacy group Better Medicare Alliance. The group expressed eagerness to collaborate with Oz to “protect and strengthen this vital program for seniors.”

The Senate must confirm Oz's appointment. As the CMS administrator, he would oversee a vast agency providing coverage through Medicare, Medicaid, and other programs to more than 160 million individuals. Kennedy’s stance on these programs is unclear, which may grant Oz considerable latitude in managing the agency.

Oz would wield significant influence over Medicaid, the safety-net insurance program serving more than one in five Americans, including low-income individuals and those with disabilities. He could approve state requests to modify their Medicaid programs, including implementing work requirements for beneficiaries.

In his statement, Trump emphasized that Oz will work to eliminate “waste and fraud” within the agency.

Conservative health policy experts anticipate that the Trump administration will address what they refer to as state “financing gimmicks” to secure additional federal funding. The Trump campaign posited that his mass deportation proposals would help “end the financial drain” on the U.S. healthcare system, ensuring that Medicaid can adequately serve eligible citizens.

Oz will also be responsible for overseeing Medicare drug price negotiations, a process recently initiated under the Inflation Reduction Act, which has faced legal challenges from the pharmaceutical industry and business groups.

On Capitol Hill, Sen. Lindsey Graham expressed to PMG on Tuesday that Oz “seems qualified to me.”

Sen. Bill Cassidy, the upcoming chair of the Senate HELP Committee, acknowledged on X that he is “glad to hear” of Oz’s appointment. “It has been over a decade since a physician has been at the helm of CMS, and I look forward to discussing his priorities. This is a great opportunity to help patients and implement conservative health reforms,” he stated.

Sen. Tommy Tuberville remarked that Trump “added another all-star to his list of people that are very popular and want to help the country."

However, Oz may face challenges in garnering Democratic support.

Sen. Sheldon Whitehouse expressed concerns about Oz’s lack of experience, stating, “I’ll have to take a look at him. He certainly didn't enhance his credibility much in the Senate race.”

Sen. Tim Kaine conveyed to PMG that he’s “not impressed but I’ll look forward to talking to him.”

David Lim contributed to this report.

Anna Muller contributed to this report for TROIB News