Elon Musk calls what he claims within Medicare and Medicaid “the epicenter of fraud.” In a post on X, Musk said the Centers for Medicare and Medicaid Services (CMS) “wasted $100 million in taxpayer money.”
Musk tweeted that his Doge team (the government’s efficiency department) would work with CMS officials to review the payment and contracting system. With this revelation, the scale of fraud and mismanagement in these programs faces serious scrutiny, and the Trump administration is preparing to tackle abuse head-on.
This revelation could shake up the American health care system. Musk, a major effort under President Trump’s newly created Doge, claims that the Centers for Medicare and Medicaid Services (CMS) has wasted $100 billion in taxpayer money.
On Wednesday, the Musk team and two senior CMS veterans began reviewing the agency’s payment and contract system. This is the backbone of one in four Americans’ health insurance.
“CMS has two senior agency veterans leading collaborations with DOGE, including ensuring proper access to CMS systems and technologies. Doge has read-only access to CMS systems. Access is given.
The mission is to find better resource use opportunities in line with Trump’s efficiency agenda, according to Andrew G. Nixon, Director of Communications at HHS. However, the focus soon began to reveal what masks describe as ramp-stretching scams from efficiency.
“This is where big money scams are happening,” Musk tweeted in response to a post about Doge Aides, searching for CMS payment systems for fraud.
Yes, this is where big money scams are happening https://t.co/jxqxrlkdgp
– Elon Musk (@elonmusk) February 5, 2025
By Thursday night, Musk’s claims were even more bold when he tweeted, “They’ve wasted $100 million in taxpayer money!”
They’ve wasted $100 million in taxpayer money! https://t.co/lztrlificiju
– Elon Musk (@elonmusk) February 7, 2025
CMS processes 1 billion Medicare claims each year, oversees the quality of care through hospital and nursing home inspections, and distributes billions to states for Medicaid programs. Medicare covers around 68 million people, primarily elderly people and people with disabilities, while Medicaid serves around 73 million low-income Americans.
Between June and October 2024, CMS suspended market agreements for 850 agents and brokers due to alleged fraud and abusive practices, including fraudulent registrations and plan switches. These agents are currently prohibited from participating in marketplace registrations and are unable to receive fees.
The Department of Justice is also cracking down on medical fraud. In June 2024, 193 defendants, including 76 healthcare professionals, were charged for their role in a fraud scheme that was about $2.75 billion in false claims. Since 2007, more than 5,400 defendants have been accused of claiming more than $27 billion from Medicare, Medicaid and private insurance companies.
Musk’s latest research has brought the spotlight back to CMS. This could only be the beginning of a much bigger investigation into fraud and mismanagement in federal healthcare programs.
Time limit experiment
On the other hand, Doge’s lifespan is as bold as its target. The division is scheduled to be disbanded on July 4, 2026, marking its 250th anniversary. This tight deadline underscores our commitment to efficiency. “Doge’s ultimate success is obsolescence,” Musk said, adding a combination of wit and confidence signatures.
DOEG
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