Dr. Mehmet Oz, President-elect Donald Trump’s nominee to head the Centers for Medicare & Medicaid Services (CMS), is under scrutiny for his significant financial holdings in companies with ties to Medicare. CMS oversees programs like Medicare, Medicaid, and the Affordable Care Act (ACA).
Key Financial Disclosures
During his 2022 Senate campaign in Pennsylvania, Dr. Oz reported investments totaling up to $33.7 million in companies directly linked to CMS operations. These include:
- Health Insurance Giants
- UnitedHealth Group: Oz held between $280,000 and $600,000 in stock.
- CVS Health: He owned between $50,000 and $100,000 in shares.
Both companies provide Medicare Advantage plans, a private insurance alternative regulated by CMS.
- Technology Providers
- Amazon: Stock valued at $5.8 million to $26.7 million.
- Microsoft: Stock valued at $1.6 million to $6.3 million.
Both companies supply cloud services (Amazon Web Services and Microsoft Azure) used by CMS to manage critical systems and data.
- Digital Health Firm Sharecare
- Oz held $5 million to $25 million in Sharecare, which provides in-home personal care benefits for Medicare Advantage members.
Potential Conflicts of Interest
Critics, including lawmakers and advocacy groups, have expressed concerns about Dr. Oz’s ability to lead CMS impartially due to his financial ties:
- Medicare Advantage Advocacy: In 2020, Oz supported expanding Medicare Advantage and criticized traditional Medicare as “highly dysfunctional.”
- Senate Letter of Concern: Senator Elizabeth Warren and six other senators called for Oz to divest his holdings and recuse himself from decisions affecting related companies.
- Intertwined Relationships: Accountable.US highlighted that Oz’s investments could influence decisions impacting millions of seniors reliant on Medicare Advantage.
Ethical Requirements for Federal Nominees
If confirmed, Dr. Oz must comply with strict ethical guidelines, including:
- Divestment: Selling stocks that pose conflicts of interest within 60–90 days.
- Recusal: Avoiding decisions that could financially benefit companies in which he holds an interest.
The Office of Government Ethics and Department of Health and Human Services will review his disclosures to ensure compliance.
Challenges in Avoiding Conflicts
CMS’s reliance on private insurers and major technology providers complicates ethical compliance. Medicare Advantage, for example, is a rapidly growing segment, covering nearly half of Medicare beneficiaries in 2024. UnitedHealth Group and CVS Health alone accounted for over 40% of Medicare Advantage enrollments.
Similarly, Amazon and Microsoft are key partners in CMS’s data management, meaning decisions about technology contracts could directly impact these companies.
Delaney Marsco, ethics director at the Campaign Legal Center, noted, “Almost everything Dr. Oz touches at CMS could affect his financial holdings, particularly in health insurance.”
Next Steps for Dr. Oz
Dr. Oz’s team has stated that he sold his stake in Sharecare but has not addressed whether he still owns stocks in Amazon, Microsoft, or health insurers. The Senate will evaluate his financial disclosures and ethics plan as part of the confirmation process.
Ethics experts emphasize that full divestment or recusal is essential to avoid undermining public trust in the nation’s healthcare system.
Conclusion
Dr. Oz’s financial ties to companies associated with Medicare and Medicaid programs pose serious ethical questions as he prepares to lead CMS. His ability to address these concerns transparently will play a critical role in shaping public confidence in his leadership and the integrity of the nation’s healthcare programs.
