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Investing.com -- On Thursday, the U.S. Senate confirmed Mehmet Oz, widely recognized from his career in television, as the new Administrator of the Centers for Medicare and Medicaid Services (CMS). The vote concluded with a 53-45 margin, reflecting a division along party lines.
The CMS, responsible for an annual budget of $1.7 trillion, is tasked with determining payment structures for healthcare providers and insurers. It oversees critical healthcare programs including Medicare, Medicaid, the Children’s Health Insurance Program, and the Affordable Care Act, which collectively insure over 150 million Americans.
One of the initial challenges Oz will face is deciding on the implementation of a proposal from the Biden administration regarding Medicare coverage for new weight-loss drugs developed by Eli Lilly & Co (NYSE:LLY). and Novo Nordisk (NYSE:NVO) A/S. This decision will be among his first policy actions as head of CMS.
During his confirmation process, Oz provided testimony to the Senate Finance Committee, where he avoided committing to oppose Medicaid funding reductions. Instead, he advocated for adequate compensation for Medicaid service providers and stressed the need for a robust network of Medicaid-accepting providers to ensure service delivery.
Oz also addressed several other healthcare issues in his testimony. He criticized delays in care resulting from slow insurance pre-approvals, labeling them a "pox" on the American healthcare system. He committed to enforcing the Hyde Amendment, which limits federal funding for abortions, and suggested that artificial intelligence could help streamline the insurance pre-approval process.
Additionally, Oz affirmed his intention to defend the Medicare drug pricing negotiation program in legal challenges. He also supported the idea of implementing work requirements for Medicaid recipients. Amidst rumors, Oz clarified that he has not been involved with the cryptocurrency DOGE nor discussed it with members of the Trump administration.
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