The pick continues a trend of Trump picking television fixtures for key administration roles, including Pete Hegseth for defense secretary and Doug Collins for VA secretary. A person familiar with the situation granted anonymity to speak candidly said Oz was not among the early candidates on the list for the job. Former top HHS official Paul Mango, a more conventional pick, was a top candidate, but Kennedy did not support him, according to a second person with knowledge of the discussions.
Oz has been a major supporter of Medicare Advantage, the Medicare-approved private option that has grown in popularity but has come under intense scrutiny for care denials and alleged overbilling. During his Senate campaign, Oz pushed a “Medicare Advantage for All” plan that would expand the program.
“These plans are popular among seniors, consistently provide quality care and have a needed incentive to keep costs low,” Oz said in an AARP candidate questionnaire. In August, he posted a YouTube video to his nearly 2 million subscribers on “the benefits of enrolling” in Medicare Advantage.
As administrator, he’d have significant power over Medicare Advantage policy, including reimbursement for the plans. Some hospitals and health systems have dropped the plans, citing payment delays and care denials.
There has also been a major battle over Medicare Advantage payment rates under the Biden administration. Trump and insurers have accused the Biden administration of cutting payments. CMS has argued the changes to payment amount to payment bumps when accounting for the insured population’s health. MA plans have pulled back on their plan offerings this year, citing financial pressures.
“Dr. Oz recognizes the value of Medicare Advantage and the high-quality, affordable, and comprehensive health care it provides to more than 34 million seniors and individuals with disabilities,” Mary Beth Donahue, president of insurer-backed advocacy group the Better Medicare Alliance, said in a statement.
The statement also said the group looks “forward to working with Dr. Oz to protect and strengthen this vital program for seniors.”
The Senate has to confirm Oz. As CMS administrator, Oz will oversee a broad agency that provides coverage through Medicare, Medicaid and other programs to more than 160 million people. Kennedy does not have clear public views on the programs, so Oz could have significant room to move as he wants with the agency.
Oz would have significant power over Medicaid, the safety-net insurance program that covers more than 1 in 5 Americans, including low-income people and those with disabilities.
He’d have the power to approve states’ requests to change their Medicaid plans, including adding work requirements for beneficiaries.
In his statement, Trump said Oz will crack down on “waste and fraud” in the agency.
Prominent conservatives in health policy circles expect the Trump administration to crack down on so-called state “financing gimmicks” to get more federal money. The Trump campaign has said his mass deportation campaign would help “end the financial drain” on the U.S. health care system and ensure Medicaid can care for qualified citizens.
Oz will also oversee Medicare drug price negotiations that were recently established under the Inflation Reduction Act, which the pharmaceutical industry and business interests have challenged in court.
On Capitol Hill, Sen. Lindsey Graham (R-S.C.) told POLITICO Tuesday that Oz “seems qualified to me.”
Sen. Bill Cassidy (R-La.), the incoming chair of the Senate HELP Committee, said in a post on X that he’s “glad to hear” Oz had been chosen to lead the agency.
“It has been over a decade since a physician has been at the helm of CMS, and I look forward to discussing his priorities. This is a great opportunity to help patients and implement conservative health reforms,” Cassidy said.
Sen. Tommy Tuberville (R-Ala.) said that Trump “added another all-star to his list of people that are very popular and want to help the country.”
Oz might not be able to rely on getting much Democratic support, though.
Sen. Sheldon Whitehouse (D-R.I.) told POLITICO that Oz’s lack of experience would be “one of a great number of concerns.”
“I’ll have to take a look at him. He certainly didn’t enhance his credibility much in the Senate race,” Whitehouse said.
Sen. Tim Kaine (D-Va.) told POLITICO that he’s “not impressed but I’ll look forward to talking to him.”