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An aerial view of the Centers for Medicare & Medicaid Services (CMS) building in Woodlawn, Maryland, captures the significant changes underway within the agency as it embarks on a restructuring journey under the leadership of Robert F. Kennedy Jr.
According to information from CNBC, CMS has implemented job cuts in its minority health office and various other divisions. Acting Administrator Stephanie Carlton addressed employees during a virtual all-hands meeting, outlining the specific offices impacted by these layoffs amidst Kennedy’s extensive plans to overhaul the Department of Health and Human Services (HHS).
Internal communications reveal that this meeting was the first gathering of CMS staff since notifications were issued regarding job eliminations. Kennedy’s plan anticipates cutting approximately 10,000 jobs throughout HHS, with CMS accounting for around 300 of those reductions, although other divisions may face far steeper cuts.
CMS plays a critical role, overseeing health insurance programs that serve about 160 million Americans among other essential health functions. The fiscal approach has come under scrutiny, with concerns regarding its implications for the Medicare program, particularly in light of the Trump administration’s previous spending cuts.
Kennedy acknowledged that certain federal personnel and programs affected by these cuts might be reinstated, stating, “because we’ll make mistakes.” However, during the meeting, Carlton did not confirm whether any CMS personnel would be reinstated, assuring employees that the most distressing impacts of recent layoffs had concluded.
While Carlton expressed regret over the necessary layoffs, she emphasized the need for CMS to reconcile its operational mission with the overarching goal of enhancing efficiency within HHS.
At the meeting, Carlton also mentioned that Dr. Mehmet Oz was set to finalize his paperwork to lead CMS, following his recent Senate confirmation. Oz, known for his previous roles in television and as a political candidate, has drawn both admiration and skepticism due to his promotion of unverified health products. Carlton indicated that Oz wished to engage employees further in another all-hands call soon.
The current staff reductions at CMS add to a substantial decrease in the department’s workforce, which has seen about 10,000 employees depart since President Trump’s tenure began due to voluntary separation options. Collectively, these actions reduce HHS’s workforce by nearly a fourth, bringing it down to about 62,000 employees.
This restructuring occurs against the backdrop of serious public health challenges, including a severe measles outbreak and the rising threat of bird flu affecting various sectors. As reported recently, the U.S. Food and Drug Administration has halted initiatives to enhance bird flu testing in dairy and pet food due to significant staffing cuts.
CMS has yet to provide further commentary on the situation.
Implications of Program Cuts at CMS
The cuts notably affected the Office of Minority Health, a unit dedicated to reducing health disparities and improving outcomes for minority populations. Established through the Affordable Care Act over a decade ago, the office’s closure may contravene existing legal frameworks, highlighting a potential ideological opposition to diversity and inclusion initiatives prevalent during the Trump administration.
Carlton acknowledged the necessity to maintain compliance with statutory obligations concerning minority health, indicating that CMS would appoint a new director for the office. However, details regarding the status of the current office director, Dr. Martin Mendoza, remain unclear.
In addition to the Office of Minority Health, the Office of Program Operations & Local Engagement, which manages Medicare and Medicaid initiatives and local stakeholder interaction, reportedly suffered significant staff reductions. Carlton conveyed that the objective behind the cuts was to streamline operations where redundancies existed.
Moreover, offices responsible for grants and contracts management, as well as the Medicare-Medicaid Coordination Office, which develops care models for dual-eligible beneficiaries, also experienced layoffs. Carlton mentioned that remaining staff or external partners might take over some responsibilities left by these cuts.
Significantly, CMS will retain essential teams focused on communication, human resources, and information technology, with the IT department remaining fully intact due to the sensitivity of the data they manage.
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