On March 14, 2025, the Senate Finance Committee held a hearing to consider the nomination of Dr. Mehmet Oz to be the Administrator of the Centers for Medicare and Medicaid Services (CMS). There was bipartisan agreement about certain topics, such as the need to address the high cost of health care, concerns about rural health, the benefits of telehealth, and the need to address concerns about the Medicare Advantage (MA) program. The biggest partisan difference on display was on the topic of how Republican reconciliation legislation would impact Medicaid funding. Democratic Senators argued that the proposal would lead to losses in coverage for those who needed it, and Republican Senators countered that Medicaid reform was about protecting coverage for those who really needed it.
OPENING STATEMENTS
WITNESS TESTIMONY
MEMBER QUESTIONS
Medicaid
Democratic Senators expressed concerns that the proposed Republican reconciliation legislation, as passed by the House of Representatives, would lead to Medicaid cuts that would hurt families, mothers, children, and providers (especially rural providers). In response to questions as to his thoughts about these potential cuts, he said he had not seen legislation that would cut Medicaid funding but said protecting Medicaid means making sure it is stable over the long term. When asked about his thoughts on work requirements from Sen. Raphael Warnock (D-GA), Dr. Oz said he supported them because of his support for the dignity of work but did not think they should be a barrier to coverage. Other Democratic Senators brought up the Medicaid expansion population. Sen. Maggie Hassan (D-NH) expressed her concerns that Medicaid budget cuts could lead some states to drop coverage for the expansion population. When asked directly about his thoughts on Medicaid expansion by Sen. Maria Cantwell (D-WA), Dr. Oz said it works for some states, but other states may try other ways to provide coverage to the uninsured.
In contrast, Republican Senators who spoke about Medicaid funding tended to talk about the need to ensure the program was stable for those whom it was initially intended to help, that is, the poor, mothers, children, and people with disabilities. Sen. Ron Johnson (R-WI) said there was a need to distinguish between Medicaid before and after the Affordable Care Act (ACA). Specifically, he argued that Medicaid expansion has been expensive, threatens the program’s ability to provide care for individuals such as people with disabilities, and has allowed certain states to game the system through the use of tools such as provider taxes. Dr. Oz agreed that by expanding the number of people on Medicaid without providing more resources to providers, you do stretch resources in a way that could impact those Medicaid was originally designed to help. Both Sens. Johnson and Marsha Blackburn (R-TN) cited concerns about Medicaid coverage for undocumented immigrants and foreign nationals. Dr. Oz said he would ensure that both Medicaid and Medicare eligibility are calculated accurately. He specifically cited an article about California’s effort to use federal dollars to pay for Medicaid coverage for undocumented immigrants. On another Medicaid-related topic, Committee Ranking Member Ron Wyden (D-OR) defended the nursing home staffing rule promulgated by the Biden administration. Sen. James Lankford (R-OK) countered that the rule may sound good but would lead to widespread closures, especially in rural areas. Dr. Oz said that examining this rule is something he wants to do early on if confirmed.
Medicare Advantage
Today’s hearing demonstrated that Senators on both sides of the aisle have concerns about the MA program. Specifically, Senators expressed concerns about charges that plans are upcoding to make patients appear sicker than they are, that they improperly deny coverage, that they engage in deceptive marketing, and that the program costs the government more than traditional Medicare. Even though Dr. Oz at one point proposed transitioning all Medicare patients to MA, he acknowledged these concerns and pledged to work with Senators on both sides of the aisle to address them. Notably, when asked by Ranking Member Wyden about what he saw as the biggest area of abuse in the private insurance market, he responded with MA sales practices. In answer to other Senators’ concerns about improper denials, he said he thinks there are too many procedures that require prior authorization and that standardization is needed when it comes to what does and what does not require prior authorization.
Chronic Health and Nutrition
Several Senators expressed concerns about the rate of chronic disease in America and asked Dr. Oz how CMS might address this concern. In answer to a question about this from Sen. Roger Marshall (R-KS), Dr. Oz said that incentivizing beneficiaries to make healthy choices was a worthy goal and said he had conversations with Ranking Member Wyden about this. Sen. Todd Young (R-IN) asked what reforms could be made in CMS to promote prevention efforts for chronic diseases. Dr. Oz gave the example of how, in MA, some plans provide a food allowance, but there is no guidance on how to eat healthy. Sen. John Cornyn (R-TX) argued that the Supplemental Nutrition Assistance Program (SNAP) subsidizes unhealthy foods.
Rural Health
Senators on both sides of the aisle expressed concerns about rural health. Sens. Blackburn and Tina Smith (D-MN) highlighted their concerns about the closures of rural hospitals. In answer to a question from Sen. Blackburn about the low wage index, Dr. Oz committed to working with Congress. Senator Chuck Grassley (R-IA) brought up his concerns about the placement of graduate medical education (GME) slots in rural areas. Additionally, Senators such as Steve Daines (R-MT) and Cortez Masto (D-NV) expressed their support for telehealth. Dr. Oz also shared his support for telehealth and noted how larger institutions in specific areas can serve their regions.
Prescription Drugs
Senators on both sides of the aisle mentioned concerns about the cost of prescription drugs. Sens. Lankford and Chuck Grassley (R-IA) expressed their support for pharmacy benefit manager (PBM) reform. Dr. OZ said that while he believes PBMs do play a role, there needs to be reforms to increase transparency. Democratic Senators such as Ben Ray Luján (D-NM) and Peter Welch (D-VT) asked Dr. Oz about his position on solutions such as Medicare price negotiation and international reference pricing. Dr. Oz says he wanted to use all available tools to lower prescription drug costs.
Other Issues
- Sen. Steve Daines (R-MT) expressed his concerns about restrictions on Medicare beneficiaries’ access to innovative medical devices. Dr. Oz said the gap between when the Food and Drug Administration (FDA) approves a product and when Medicare and Medicaid patients can access it needs to be shortened.
- Sen. Cantwell asked Dr. Oz if he would support bundling patients at or below 150% of the poverty line to ensure affordable access to care, especially if ACA tax subsidies expire. He said he would commit to looking at it as a solution.