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Inside the Meeting: Elon Musk’s Team Targets Medicare & Medicaid Reform as Fraud Investigation Deepens

February 15, 2025
Smart Money

Meeting Between Elon Musk’s Team and CMS Leadership Sparks Concerns Over Medicare and Medicaid

February 14, 2025

A recent meeting between key members of Elon Musk’s Department of Government Efficiency (DOGE) and leadership at the Centers for Medicare & Medicaid Services (CMS) has raised eyebrows across the political landscape. The meeting, dated February 13, was attended by Rachel Riley, a prominent adviser within DOGE, as well as several newly appointed officials at CMS, including the Acting Administrator Stephanie Carlton and Deputy Administrator John Brooks.

Key Participants and Agenda

According to internal records reviewed by ABC News, the meeting was titled “Planning Touch Base” and aimed to foster dialogue between DOGE and CMS. Riley, who is noted for her role in the Department of Health and Human Services (HHS) and the State Department, reportedly works closely with Brad Smith, a healthcare entrepreneur and advocate for privatizing aspects of Medicare and Medicaid. Smith previously attempted to innovate these programs during the first Trump administration, a goal that was largely overshadowed by the COVID-19 pandemic.

The discussion turned the focus on regulatory and operational efficiencies within Medicare and Medicaid, programs that serve over 160 million Americans through various health insurance offerings, including the Children’s Health Insurance Program and the Health Insurance Marketplace.

Context of the Meeting

Sources indicate that DOGE representatives, including those from Musk’s team, have been engaging with CMS since the previous week. They have sought access to the agency’s payment systems, emphasizing a desire to identify and eliminate fraud. This comes in light of a 2024 Government Accountability Office report revealing that payment errors associated with Medicare and Medicaid exceeded $100 billion in 2023.

Republicans have long criticized these programs, citing persistent issues with waste, fraud, and abuse. Meanwhile, Democrats express concern that aggressive measures to uncover fraud might unintentionally restrict access to healthcare services for vulnerable populations.

Divergent Perspectives on Health Care Access

Former President Donald Trump has publicly stated that he does not wish to reduce access to healthcare; however, his administration’s focus appears to be on eliminating fraudulent activities within these programs. The meeting generated concern among Democrats, who worry that attempts to reform CMS may lean towards “slash and burn” tactics that could compromise healthcare access.

In addition to Riley, the meeting featured other important figures, including Peter Nelson, head of the CMS office overseeing Obamacare marketplaces, and Rebekah Armstrong, who leads the Office of Legislation at CMS.

Implications for Health Policy

This meeting underscores a growing intersection of interests between the private sector and federal health care administration. The discussions highlight the ongoing debate regarding how best to manage and reform Medicare and Medicaid while safeguarding benefits for millions of Americans.

As news of this meeting circulates, the potential implications for future health policy remain to be fully understood. The engagement between DOGE and CMS signifies a pivotal moment that could reshape the way healthcare is managed at the federal level, signaling a renewed scrutiny of Medicare and Medicaid programs.

Elon Musk’s recent assertion on social media platforms hinted at a greater focus on fraud detection within CMS, further intensifying the discussions surrounding the future of healthcare in the United States.