The Centers for Medicare & Medicaid Services (CMS) is undergoing significant changes, including job reductions in its minority health office and other divisions. This restructuring is part of a larger plan initiated by Robert F. Kennedy Jr. to revamp the Department of Health and Human Services (HHS).
During a recent virtual meeting, CMS acting Administrator Stephanie Carlton outlined the areas affected by these job cuts. This meeting marked CMS’s first communication since notifications began going out to HHS employees about their job status the previous week.
Kennedy’s strategy encompasses a massive reduction of approximately 10,000 positions across HHS, with 300 of those cuts impacting CMS directly, while other agencies will face steeper reductions. This situation is particularly concerning given that CMS oversees health insurance for around 160 million Americans and is responsible for essential healthcare functions. Previous administrations have attempted to downplay the effects that cuts to government health spending might have on Medicare, a program widely relied upon by the public.
Kennedy has acknowledged that as the restructuring unfolds, he anticipates that mistakes may occur, which could lead to some affected personnel and programs being reinstated. However, amidst these changes, Carlton did not confirm any specific plans for rehiring CMS staff, though she indicated that “the painful part” of the cuts which impacts valued employees appears to be concluded. She clarified that while future changes are possible, the number of affected employees known at this time is now settled.
Carlton mentioned that Dr. Mehmet Oz’s appointment paperwork was also expected to be finalized soon. Following his recent confirmation by the Senate to lead CMS, Oz is anticipated to conduct another all-engagement meeting with staff shortly. Previously labeled “America’s Doctor,” Oz has stirred controversy through his promotion of various health supplements that lack scientific validation.
The ongoing job cuts are in addition to the roughly 10,000 employees who opted for voluntary separations since the beginning of the Trump administration. Collectively, these changes will result in a reduction of HHS’s workforce by about 25%, leaving approximately 62,000 employees within the department.
These cuts come at a precarious time as the U.S. is facing one of its most severe measles outbreaks in over twenty years alongside a resurging bird flu situation affecting both wild and domesticated animals. These health crises have caused recent outbreaks in poultry and dairy herds, raising alarm among public health officials. Compounding these issues, the U.S. Food and Drug Administration (FDA) has suspended enhancements to its bird flu testing in dairy and pet food sectors, directly due to the extensive staff reductions within the agency.
CMS has not provided statements regarding specific inquiries about these developments.
### Programs Affected at CMS
Carlton revealed that the minority health office is among the divisions impacted by the cuts, an office dedicated to working collaboratively with both local and federal organizations to address health inequalities and enhance outcomes for minority populations. This office also conducts research aimed at formulating strategies to lower healthcare expenses, prevent diseases, and mitigate the severity of chronic illnesses in the U.S.
Authorized by the Affordable Care Act over a decade ago, dissolving this office could be legally questionable. It appears to be a casualty of the current administration’s stance against diversity, equity, and inclusion (DEI) initiatives.
Carlton assured attendees that CMS must comply with its statutory obligations regarding minority health and indicated that a new director for the office would be appointed. However, there was no confirmation regarding the status of the current office director, Dr. Martin Mendoza, or whether he had been directly affected by the job cuts.
Furthermore, the Office of Program Operations & Local Engagement bore the brunt of the layoffs. This office is integral in managing Medicare and Medicaid programs and engaging with stakeholders at the community level. Carlton explained that redundancies in mission among various divisions prompted these targeted reductions.
Additionally, other departments focused on grant management and the Medicare-Medicaid Coordination Office, which assists individuals eligible for both Medicare and Medicaid, were also impacted. Carlton noted that the essential work of these offices would be redistributed either internally within CMS or through external avenues.
Despite these significant cuts, CMS will retain critical in-house teams responsible for communications, human resources, and information technology. The IT department remains unaffected due to the sensitive nature of the data they handle.
