Dr. Mehmet Oz, President Donald Trump’s pick to oversee Medicare, Medicaid and Obamacare, told senators a combination of investments, technology, and regulatory changes could both bring down costs and make America healthy again.
“We have a generational opportunity to fix our health care system and help people stay healthy for longer,” Oz told senators on the Finance Committee on Friday.
Oz, known to most Americans for offering wellness advice on his daytime TV show, seemed like an odd fit to lead the Centers for Medicare and Medicaid Services when Trump named him in November. It’s a job that would humble a skilled actuary, overseeing more than $1 trillion in health care fees. A heart surgeon before getting into TV, Oz’s resume doesn’t fit, but he brought a salesman’s skills to his confirmation hearing, promising simple solutions while offering few details.
Oz touted three reforms to fix the U.S. health system: give patients more information to navigate the system; use artificial intelligence to ease paperwork burdens on doctors; and combat waste, fraud and abuse.
Democrats wanted to have a more grounded discussion. They repeatedly asked about Medicaid, the government insurer for low-income and disabled people that Republicans will have to cut by tens of billions a year in order to pay for the tax cuts, border security and defense spending that are Trump’s foremost priority.
“All my colleagues want to know: Are you going to cut Medicaid?” asked Sen. Maria Cantwell (D-Wash.)
Sen. Maggie Hassan (D-N.H.) asked Oz how many children losing insurance would be acceptable.
Sen. Ben Ray Luján (D-N.M.) wanted to know whether Oz would oppose Medicaid cuts if they hit rural hospitals.
Oz wouldn’t be pinned down. He said he wanted to protect care for people who needed it, but he sympathized with Republican senators’ concerns that states have raised costs by permitting able-bodied adults to use the program. He said he favored work requirements, one tactic to reduce the rolls congressional Republicans are considering.
The GOP plan for Medicaid isn’t yet known. The House, along party lines, approved a budget resolution last month that called on a key committee to find $880 billion in savings over 10 years, most of which would have to come from Medicaid. Republicans are now working out the specifics.
“You are going to need to object to the Republican health plan,” Hassan said.
Oz preferred to remain on a higher plane. As the successful son of immigrants, he suggested he had the skills to motivate his staff and promote the technology, regulatory and tactical changes he said were needed.
“America is too great for small dreams,” he said, before outlining his vision.
While Oz did not delve into specifics on Medicaid cuts, he did weigh in on several problems with the popular Medicare Advantage program.
Older Americans can purchase a privately run plan that offers benefits outside of traditional Medicare like dental and vision. The program has more than 31 million enrollees, making up more than half of the total Medicare population.
Democrats and patient advocates are worried Oz is too cozy with insurers. He owns stock in the biggest Medicare Advantage insurer UnitedHealth Group and co-wrote an op-ed calling for expansion of the program. Oz has promised to divest his investments if he is confirmed.
At the hearing, Oz endorsed adding new rules to speed prior authorization, a process doctors loathe in which they must seek insurers’ approval before providing care.
“It will take a lot of the angst out of the system for the American people,” he said.
Oz also said it was a problem that Medicare Advantage costs more than traditional Medicare. A March 2024 analysis from the Medicare Payment Advisory Commission, which advises Congress on Medicare policy, estimated CMS would spend $83 billion more last year on Medicare Advantage compared to traditional Medicare.
Industry analysts are expecting a friendlier tone from CMS on Medicare Advantage compared to the Biden administration, which issued rules to crack down on marketing practices and overhauled audits to find wasteful spending.
Oz suggested during the hearing he, too, was planning to seek savings in the program.
“We have to go after places and areas where we are not managing the American people’s money well,” he said.