News

Dr. Oz Explains His Policy Priorities for Medicaid, Medicare, and More in Confirmation Hearing

• On Friday, March 14, the U.S. Senate Finance Committee held Dr. Mehmet Oz’s confirmation hearing for his nomination to become CMS Administrator. President Trump’s nominee faced questions on public health, Medicare Advantage, Medicaid policies, and more. In his testimony, Dr. Oz appeared to be supportive of the Administration’s Make America Healthy Again agenda and signaled his willingness to pursue policy options that address chronic disease with the aim of reducing healthcare costs. Dr. Oz also stated that he considered upcoding in Medicare Advantage to be fraudulent and reiterated his commitment to reducing fraud, waste, and abuse in both government programs. However, he declined to comment on the potential Medicaid cuts from the House. In contrast, Dr. Oz signaled his willingness to work with policymakers on work requirements for Medicaid, stating that while he supports a strong work ethic, he also believes that the policies should not be used as an obstacle to coverage. Dr. Oz discussed the topic of federal financing for Medicaid expansion, explaining his belief that the Medicaid expansion population stretches healthcare resources for categorically eligible beneficiaries – like the aged, blind, disabled, and youth – more thinly, thus reducing the quality of their care. Other areas of interest for Dr. Oz that were discussed included the use of AI in healthcare, increased price transparency, and financial incentives for providers. It is expected that Dr. Oz will secure the votes necessary to become CMS Administrator.(Modern Healthcare, March 14; Health Payer Specialist, March 14; Inside Health Policy, March 14).

Judge Orders Reinstatement of Federal Workforce, Agencies Offer Resignations

• On Thursday, March 13, a Baltimore judge (Judge James Bredar) issued a temporary restraining order (TRO) directing the reinstatement of probationary federal employees discharged across 18 agencies under the Trump Administration’s workforce cuts, including the Department of Health and Human Services (HHS). This order was more expansive in scope than a court order earlier that day in California, which only directed the reinstatement for six agencies. The agencies had until 1 p.m. on Monday, March 17, to comply. Judge Bredar found the probationary layoffs to be illegal, citing a lack of proper notice and individual assessments, categorizing them as unlawful reductions in force (RIFs). Judge Bredar’s order applies nationwide to ensure consistency in job reinstatement regardless of location. The layoffs are paused for 14 days pending further decisions from the court. The Trump Administration is appealing the case to the Fourth Circuit Court of Appeals. Meanwhile, sources say that while HHS agencies are beginning to comply with the TRO, some employees are being placed on administrative leave instead of returning to work. Additionally, some probationary employees state that as of the beginning of the week, they had not heard from their supervisors or human resource departments. In some cases, it appears that CMS is offering probationary employees the opportunity to resign with a clean record. The plaintiffs in the case, Democratic state attorneys general, estimate that around 24,000 probationary employees were discharged, though the defendants dispute this count (Inside Health Policy, March 14; Fierce Healthcare, March 17; Inside Health Policy, March 17).

CMMI Ends Several Innovation Models

• The Centers for Medicare & Medicaid Services (CMS) is shutting down several healthcare programs under the Center for Medicare and Medicaid Innovation (CMMI) earlier than planned. The agency states the move will save taxpayers $750M and allow CMS’s Innovation Center to focus on programs with meaningful impact. These programs, originally designed to improve care quality and efficiency, were part of CMS’s Innovation Center, which tests new healthcare payment and delivery models. The affected models include:
  • Primary Care First
  • Making Care Primary
  • Maryland Total Cost of Care
  • End Stage Renal Disease (ESRD) Treatment Choice
  • Medicare $2 Drug List Accelerating Clinical Evidence

While some of the health programs were already scheduled to end, others – like Making Care Primary (originally set to end in 2034) – were relatively new. CMS states that they are not stepping away from primary care but instead shifting gears to explore better ways to improve healthcare while keeping costs down. Healthcare providers who invested time and resources into these programs have criticized CMS for shutting down these programs, with CMS stating they will provide transition support for affected participants. Looking ahead, CMS shared that it is planning a new strategy for the agency, focusing on evidence based preventative care, patient empowerment, and pushing choice and competition (Inside Health Policy, March 12; Health Payer Specialist, March 14).

Federal Legislation

Senate Passes Continuing Resolution, Averting Impending Government Shut Down

• On March 14, the Senate voted 54-46 to pass a continuing resolution (CR) funding the federal government through the end of this fiscal year (September 30, 2025), ahead of the March 14 deadline. The CR also extends healthcare services and programs that were set to expire on March 31, including an extension of the delays to Disproportionate Share Hospital (DSH) cuts and continued funding for Federally Qualified Health Centers. The resolution was signed into law by President Trump on March 15 (Fierce Healthcare, March 14; The Hill, March 14; The Hill, March 15).

Senate Bipartisan Healthcare Package Blocked

• Last week, it was reported in the Digest that Senators Bernie Sanders (I-VT), and Ron Wyden (D-OR) reintroduced the bipartisan healthcare spending bill from December 2024. The two Senators sought unanimous consent to pass the legislation through the chamber. However, on March 14^th, the bill was blocked without explanation by Senator Rick Scott (R-FL), under a process that allows one Senator to object rather than needing to receive majority vote. The healthcare package included a two-year extension of Medicare telehealth flexibilities, a five-year extension of the Acute Hospital Care at Home program, and reforms to pharmacy benefit managers (PBMs) aimed at reducing drug costs. It also proposed a 2.5% increase in Medicare physician reimbursements, a ban on Pharmacy Benefit Managers (PBMs) using spread pricing with Medicaid, and measures to improve transparency in drug pricing and generic drug approvals. Additionally, the package sought to reauthorize key programs like the Pediatric Priority Review Voucher and the Pandemic and All-Hazards Preparedness Act. However, the Continuing Resolution that was signed into law on March 15th includes some of the same policies, absent PBM reforms, an increase in Medicare physician payments, and others (Inside Health Policy, March 14).

Federal Regulation and Guidance

New CMS Regulations to Bring About CT Scan Safety Measures

• Approximately 93 million CT scans are performed in the United States every year, over half of which are for individuals over the age of 60. As research on radiation exposure and CT dosage grows, experts in the field warn of caution for the continuous usage of these scans for children and older adults. A 2009 report published in JAMA indicated that CT scans were responsible for approximately 29,000 cases of excess radiation each year, potentially contributing to growth issues in children and a higher cancer risk in older adults. CMS is in the process of publishing new regulations which aim to make imaging safer by requiring careful assessment of dosage, quality, and necessity of CT scans. While the regulation formally began this January, it will take three years for the rules to be completely established. Additionally, beginning in 2027, providers who do not comply with the regulations may face fines under Medicare (Modern Healthcare, March 14).