Musk's Government Efficiency Department Investigates Potential Fraud in Medicare and Medicaid

Created: JANUARY 27, 2025

Elon Musk's Department of Government Efficiency (DOGE) is partnering with the Centers for Medicare and Medicaid Services (CMS) to investigate potential fraud within the massive healthcare programs, according to a recent Wall Street Journal report. This move follows DOGE's significant restructuring of USAID, which involved dismissing numerous officials and integrating the agency into the State Department.

CMS manages both Medicare, covering older and disabled Americans, and Medicaid, serving lower-income individuals. Combined, these programs provide health insurance to over 140 million U.S. citizens. While CMS routinely addresses improper payments, which can stem from fraud, abuse, or administrative errors, Musk has indicated on social media platform X that he believes significant fraud exists within these programs.

The Wall Street Journal report clarifies that Musk's team does not have access to databases containing sensitive personal health information of Medicare and Medicaid beneficiaries. This new initiative comes shortly after DOGE's overhaul of USAID, an agency Musk characterized as a "viper's nest." USAID, responsible for distributing foreign aid, had a budget of approximately $40 billion last year, as per the Congressional Research Service.

Following an executive order from President Trump, Secretary of State Marco Rubio temporarily suspended all U.S. foreign assistance channeled through the State Department and USAID. This 90-day pause has significantly impacted numerous humanitarian, development, and security programs globally, resulting in layoffs within aid organizations due to funding disruptions.

Elon Musk

Elon Musk, leading the Department of Government Efficiency, spearheaded an investigation into USAID's spending. (Getty Images)

USAID protests erupt after Trump shuts down agency

Protests erupted outside USAID headquarters in Washington, D.C. following the agency's restructuring. (Kevin Dietsch/Getty Images)

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