Senate Finance grills Dr. Oz on Medicaid, Medicare Advantage and health-cost reforms during CMS hearing

Dr. Oz, nominated to lead the Centers for Medicare & Medicaid Services, told the Senate Finance Committee on March 18 that he would work to preserve coverage for vulnerable people, modernize agency operations and pursue cost savings while expanding tools like telehealth and artificial intelligence.

The hearing centered on whether Dr. Oz would defend Medicaid and traditional Medicare against proposed cuts and whether he would confront alleged abuses in Medicare Advantage and prescription-drug pricing. Senators pressed the nominee on specifics ranging from upcoding by Medicare Advantage plans and pharmacy benefit managers' role in drug prices to whether he would oppose program changes that would reduce access in rural areas.

The nominee told senators he “cherish[es] Medicaid” and pledged to try to ensure the program’s viability through efforts such as improving provider payment and addressing workforce shortages. Ranking Member Senator Wyden asked a direct question about adherence to law amid political pressure; Dr. Oz answered that he would “follow the law rather than an illegal directive from the president,” a formulation noted by several senators as significant in the context of broader executive-branch controversies noted elsewhere in committee business.

Committee members pressed Dr. Oz repeatedly on Medicaid cuts being debated in congressional budget proposals and on state-level policies such as work‑verification requirements. Multiple senators asked for yes-or-no commitments on protecting Medicaid funding; Dr. Oz declined to offer categorical precommitments in every case, saying he would need to review agency authority and specific proposals but repeatedly affirmed the goal of protecting vulnerable beneficiaries. Senator Hassan, Senator Warren and others cited concerns about proposals they said would remove coverage from millions if enacted.

Senators from both parties raised Medicare Advantage practices. Senator Warren and others described upcoding and home-visit programs that they say resulted in inflated diagnosis lists and higher federal payments; Dr. Oz acknowledged the problem is “an area where a system which was in theory a good one…has been abused” and said he would pursue enforcement and transparency if confirmed. He also agreed with senators that human review must remain part of decisions tied to prior authorization and utilization reviews, while proposing agency use of tools, including AI, to detect abusive patterns more rapidly.

Other subjects included: - Pharmacy benefit managers (PBMs): senators asked Dr. Oz to support oversight to reduce hidden spreads and protect independent rural pharmacies. The nominee said greater transparency into rebates and pricing spreads was needed to lower patient and government costs. - Rural hospitals and nursing‑home staffing: senators warned that proposed program changes and staffing rules could accelerate rural closures. Dr. Oz pledged to look for flexible, community‑appropriate solutions and to consult senators about alternatives that preserve local access. - Telehealth and chronic‑disease prevention: Dr. Oz argued for greater use of telemedicine and digital tools to extend access in rural areas and for incentives that encourage healthier lifestyles to reduce long‑term costs. - Marketing, supplements and prior statements: several senators pressed Dr. Oz about his past promotion of dietary supplements and media activities; he said earlier claims on some supplements were mistaken and that he would prioritize evidence and patient protection in CMS policymaking.

The hearing produced no formal action on the nominee. Senators said they would submit additional written questions to him; the committee chair set a Wednesday, March 19 deadline for questions for the record. The committee recessed the meeting for floor votes and left further scheduling to the leadership of the committee.