How Trump’s Nominee Dr. Oz Might Affect the Cost of Your Medicare or Medicaid Benefits
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
President-elect Donald Trump hasn’t taken office yet but he’s been busy laying out his proposed cabinet choices, some of which are turning heads.
One such nomination is Dr. Mehmet Oz, proposed by Trump to administer the programs at the Centers for Medicare and Medicaid Services (CMS), which manage federally funded healthcare for seniors and low-income individuals and families. While Dr. Oz was trained as a cardiothoracic surgeon, he became famous through his books and TV show, “The Doctor Oz Show.” Though trained in traditional medicine, over the years he’s begun to support numerous “alternative” healthcare products and treatments and has been a vocal critic of aspects of the American healthcare system, including Medicare.
Democrats have concerns. NBC News reported that Democratic Sen. Patty Murray, of Washington, a senior member of the Health, Education, Labor and Pensions Committee said, “No one should doubt that Dr. Oz and the Trump administration pose a very real threat to Medicare, Medicaid and health coverage as we know it.” She then added, “Trump notoriously undermined the Affordable Care Act every chance he got and drove healthcare costs through the roof.”
Republican opinion is mixed, but Sen. Susan Collins, a Republican from Maine, told Politico that he is a “well respected” physician, and added, “It may well be helpful to have someone who has been a healthcare provider running that agency because they would have a whole different perspective.”
What changes could Medicare and Medicaid see if Dr. Oz is confirmed to run two of the most major federal healthcare programs?
Privatization of Medicare
Dr. Oz has supported privatized Medicare in the past, a plan he called “Medicare Advantage for All.” This plan would eliminate Medicare and put all Americans not on Medicaid in a private Medicare Advantage plan, according to Yehuda Tropper, CEO of Beca Life.
While this might sound equitable, Tropper said, “Unfortunately, Medicare Advantage plans have consistently overbilled Medicare and denied routine care for patients.” Instead, he said, traditional Medicare offers more care and spends less on administration costs — only 1.3% of total program spending compared to Medicare Advantage’s 8%.
“The impact on retirees of expanding privatized Medicare to everyone would be less care and a harder time getting care.”
Reduced Federal Funding for the ACA
Jamie Miller, founder of CPR Certification Plus and an advocate for accessible healthcare education, suggested that Dr. Oz may support reducing funding for aspects of the Obama-era Affordable Care Act (ACA).
This could include offering health savings accounts (HSAs) as an alternative to health insurance when other funding is not provided.
According to NBC News, Dr. Oz formerly praised the ACA for offering a “safety net,” however Trump has called for replacing it and Dr. Oz may very well fall in line with Trump’s vision (though Trump has not outlined a replacement plan). It’s difficult to know for sure what Dr. Oz might do.
Force a Need for Long-Term Care Insurance
Should there be Medicare cuts, Tropper recommended retirees look into buying long-term care insurance to pay for home healthcare. “To cover healthcare costs, they may want to look into annuities, life insurance and life settlements.”
This may be easier said than done, however, for lower-income individuals who rely upon these federal plans for their healthcare.
Necessitate a New Way of Paying for Healthcare
Miller recommended retirees look at switching to Medicare Advantage plans, which he said, “could be the cheapest option but they need to be analyzed to ensure no expenses are concealed.”
Other plans could be MediGuard Medigap policies, which are designed to fill in the gaps and “protect [seniors] from a low level of traditional Medicare.”
There also may be some state and local health programs available to “respond to the void in services rendered,” Miller said.
How Soon Could Changes Take Place?
If Trump were to embolden Dr. Oz to actually do away with Medicare, as some people fear, it would require a vote by Congress — that is above the purview of a presidential executive order, Tropper said.
He feels that could take some time, based on how long the ACA took to pass. “It may not happen at all, however, because Medicare is one of the most popular government programs in the country.”
On the other hand, Republicans hold a majority in both the House and the Senate, so there could be less congressional gridlock if they vote in accord.
More From GOBankingRates
