Dr. Oz vows to scrutinize Medicare Advantage as CMS head
Listen to the article 3 min
This audio is auto-generated. Please let us know if you have feedback.
Dr.
“We’re actually apparently paying more for Medicare Advantage than we’re paying for regular Medicare. So it’s upside down,” he said in front of the Senate Finance Committee Friday.
If confirmed, Oz, a physician and TV personality, would manage the federal agency that provides coverage to more than 160 million people through Medicare, Medicaid, the Children’s Health Insurance Program and the Affordable Care Act exchanges.
Oz has previously advocated for expanding the MA program and worked as a broker for the plans, according to the
Oz could join the agency as MA, where private insurers contract with the federal government to manage beneficiaries’ care, has become an increasingly popular option for seniors and other enrollees.
However, the coverage option isn’t driving down costs for the government. Medicare will spend
One way to tackle higher costs in MA is through cutting down on upcoding, Oz told the committee Friday. MA plans are paid a fixed amount each month per member, adjusted for enrollees’ health risks.
But beneficiaries in the privatized plans tend to rack up more diagnosis codes than those in traditional Medicare, driving up their health risks and thus payments to insurers. Increased coding intensity and favorable selection of less expensive beneficiaries are the main reasons MA plans cost more, according to MedPAC.
During the hearing, Oz noted plans sometimes conduct health assessments to find new diagnoses to add to their medical records, even if those conditions wouldn’t require any additional healthcare services.
“If someone’s showing up at your home to figure out if you have a small plaque in your carotid [artery], because they’re going to charge a lot more for the care of your plaque — which they're not actually going to do anything for — that’s wrong,” he said.
The nominee also argued the CMS could cut down the amount of prior authorization requests, where providers have to receive approval from patients’ insurers before they perform a service. Claims denials by MA plans, including through the use of artificial intelligence tools, has become a concern for lawmakers and regulators.
Oz suggested the CMS could limit the number of procedures subject to prior authorization to 1,000, compared to about 5,500 procedures today.
“A part of this is just recognizing there’s a new sheriff in town,” he said. “We actually have to go after places and areas where we’re not managing the American peoples’ money well.”


Judge adjourns Luigi Mangione’s hearing in New York federal case until April
These are the three retirement changes that will take effect as of April 2025
Advisor News
- What advisors must know about accessible client documents
- Your client texted. Now what? The compliance rules advisors better know
- Helping small-business owners build, grow and exit
- Help women break through their retirement roadblocks
- Advisors await SEC decision on Vanguard fair fund distribution
More Advisor NewsAnnuity News
- Legacy Marketing Group partners with Malibu Life USA for annuity launch
- Best’s Market Segment Report: Global Life/Annuity Reinsurers Remained Poised for Steady Growth
- When technology becomes easy to rent, what still separates life and annuity carriers?
- Legacy Marketing Group® and Malibu Life USA Announce Distribution Partnership for New Fixed Indexed Annuity Platform
- Empower Annuity Insurance Company of America Trademark Application for “EMPOWER WHAT’S NEXT” Filed: Empower Annuity Insurance Company of America
More Annuity NewsLife Insurance News
- Venus Williams to headline speaker roster for Finseca 2027 experience
- How advisors can get clients to act sooner on life insurance
- AM Best Affirms Credit Ratings of Crum & Forster Insurance Group’s Members and Monitor Life Insurance Company of New York
- AM Best Affirms Credit Ratings of Life Insurance Company Centras Life JSC
- AM Best Withdraws Credit Ratings of New Providence Life Insurance Company
More Life Insurance NewsProperty and Casualty News
- Car insurance company with history of consumer complaints to pay Illinois over $200,000
- DC LEADS MULTISTATE ENFORCEMENT, JOINS $15.5 MILLION SETTLEMENT WITH MORTGAGE SERVICER OVER FORCE PLACED INSURANCE
- Who should get flood insurance?
- STATE AUDITOR JAMES BROWN PERMANENTLY REVOKES LICENSE OF KALISPELL BAIL BONDSMAN ACCUSED OF USING POSITION TO EXPLOIT MONTANANS, INCLUDING FOR SEXUAL FAVORS
- CT business owner charged with failing to have workers’ compensation insurance when employee injured
More Property and Casualty News