How the DOGE Agenda Could Impact Medicaid, Veterans' Healthcare
Fierce Healthcare | By Noah Tong
Axes and chainsaws, not butter knives and chisels.
That’s how Department of Government Efficiency (DOGE) commission co-chair Vivek Ramaswamy describes the approach he and world’s richest man Elon Musk will take to reducing the size of the federal government.
Musk has said he wants $2 trillion slashed from the budget, a figure that borders on ambition and an impossibility depending on who you ask. Benefits to Medicaid could be on the chopping block.
The duo outlined their goals in a Wall Street Journal op-ed. DOGE will work with the Office of Management and Budget (OMB) to rescind regulations and cut costs, they say, on the belief that recent court cases give them authority to reverse prior executive overreach under other administrations.
They also want to reduce the head count of federal employees at agencies by skirting civil service protection norms, mandate in-person work (with support from some senators and despite union pushback) and move agencies out of Washington, D.C.
Lastly, Musk and Ramaswamy intends to “take aim” at unauthorized spending from Congress to eliminate funds to Planned Parenthood. If possible, Trump and co. are looking to sidestep the 1974 Impoundment Control Act, which ensures a president cannot refuse to release congressionally appropriated funds to programs. The strategy to fight impoundment law in the court system is endorsed by former House Speaker Newt Gingrich.
Lawmakers fluctuate on how they hope to accomplish the DOGE’s plans. Some say entitlement programs like Medicare and Medicaid won’t be touched, while others make no such promises. Outgoing Rep. Michael Burgess, R-Texas, suggested the DOGE eliminate redundant departments (PDF) within the the Centers for Medicare & Medicaid Services.
Fierce Healthcare took a closer look at the healthcare implications of the DOGE and recent comments made by Ramaswamy and other Republicans on Medicaid and veterans’ care.
Healthcare for veterans
On Nov. 13, just over one week after the presidential election, Ramaswamy denounced expired government programs that account for $516 billion each year.
“There are 1,200+ programs that are no longer authorized but still receive appropriations,” he said on X. “This is totally nuts. We can & should save hundreds of billions each year by defunding government programs that Congress no longer authorizes. We’ll challenge any politician who disagrees to defend the other side.”
Top of the list of these programs is the Veterans’ Health Care Eligibility Reform Act of 1996, costing the government $119 billion a year. This law continues to self-authorize and receive discretionary funding each year through spending bills. The law expired in 1998 but continues to provide medical benefits to veterans today.
Does Ramaswamy actually want to de-fund this program, which has the potential to be politically devastating to his party?...
Medicaid
If the DOGE and the Trump administration are looking for cuts wherever they can find them in the $6.75 trillion federal budget, and all of discretionary funding accounts for $1.7 trillion, they will have to look toward Social Security, Medicare or Medicaid for further action.
Ramaswamy is leaving the door open to reform Medicare and Medicaid by eliminating waste and fraud through program integrity measures, reported multiple news publications. He has also called on reducing duplicative payments for individuals enrolled in Medicare Advantage and veterans’ healthcare.
Republicans could be shy to cut benefits to Medicare and Medicaid, but lawmakers seem to be keeping an open mind. Rep. Ralph Norman, R-South Carolina, said “nothing is sacrosanct” following a closed doors DOGE meeting with Musk and Ramaswamy in early December. Other lawmakers—like Reps. Brett Guthrie of Kentucky and Mark Alford of Missouri, as well as Sens. Rand Paul of Kentucky, John Cornyn of Texas and Chuck Grassley of Iowa—say various options of federal program reforms are possible.
Cuts to Medicaid could be pushed in one or two big reconciliation packages where only a simple majority is needed, said Kristin Wikelius, chief program officer at United States of Care, a think tank advancing expanded health access. Medicaid policies will likely mirror Trump’s first term.
There is likely to be return to work requirements for state Medicaid programs, said Eric Levine, associate principal at Avalere. Those requirements normally look different on a state-by-state basis
“You can see redder states implementing them as a way to reduce enrollment for a populations who would be deemed able to work and to not divert resources from the traditional Medicaid population,” he explained…
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