Musk’s DOGE representatives search Medicare agency payment systems for fraud, WSJ reports

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(Reuters) – Representatives of Elon Musk’s Department of Government Efficiency (DOGE) have been working at the Centers for Medicare and Medicaid Services (CMS), where they have gotten access to key payment and contracting systems, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The representatives have been on site at the agency’s offices this week and are looking at the systems’ technology as well as the spending that flows through them, with a focus on pinpointing what they consider fraud or waste, according to the report.

DOGE representatives are also examining the agency’s organizational design and how it is staffed, the WSJ said.

Musk, who chairs the newly created DOGE, in a post on social media platform X referencing the WSJ report said, without providing evidence, that “this is where the big money fraud is happening”.

The world’s richest man and an ally of U.S. President Donald Trump, Musk, has been tasked by Trump to identify fraud and waste in the government.

CMS oversees Medicare, the health coverage program for older and disabled Americans, and Medicaid, for lower-income enrollees, which provide insurance for over 140 million U.S. citizens.

The CMS regularly deals with improper payments that represent fraud or abuse but might also be due to a state, contractor, or provider missing an administrative step.

The federal agency said on Wednesday it was collaborating with DOGE and ensuring proper access to CMS systems and technology.

“We are taking a thoughtful approach to see where there may be opportunities for more effective and efficient use of resources in line with meeting the goals of President Trump,” CMS added.

When asked about the WSJ report and whether the DOGE had accessed CMS’ payment and contracting systems, representatives for the White House did not address specifics but defended Musk and the DOGE’s actions overall, saying they were fulfilling Trump’s commitment to make the federal government more accountable.

One of the systems accessed by the DOGE representatives is the CMS Acquisition Lifecycle Management system, which includes information about contracts, the WSJ said.

The report, citing one of the people familiar with the DOGE’s work at CMS, said that Musk’s allies have not been given access to databases that include identifiable personal health information of Medicare or Medicaid enrollees.

The DOGE’s access is “read-only,” meaning that its affiliates cannot make changes to the systems, the WSJ reported.

The U.S. Treasury said on Tuesday that Musk’s team has been granted “read-only access” to its payment system codes but denied that this cut off any government payments, including those of Social Security or Medicare.

(Reporting by Sriparna Roy and Christy Santhosh in Bengaluru; Editing by Alan Barona and Shounak Dasgupta)