Warren Urges Medicare Nominee Oz to 'Divest From Financial Conflicts of Interest'

U.S. Sen. Elizabeth Warren on Wednesday called on Dr. Mehmet Oz, President Donald Trump's nominee to head the federal agency in charge of Medicare, to divest all financial ties to Big Pharma and healthcare companies in order to avoid conflicts of interest and gain the public's trust.

"Congratulations on your nomination to serve as administrator of the Centers for Medicare and Medicaid Services (CMS)," Warren (D-Mass.) wrote in a letter to the celebrity heart surgeon and erstwhile purveyor of phony weight loss cures. "If confirmed, you will be expected to steward CMS' $1.5 trillion budget in the best interest of the over 140 million Americans on Medicare and Medicaid. Entering this role with financial conflicts of interest would undermine your effectiveness and the effectiveness of the programs you are slated to administer."

"To avoid this, I request that you agree to: divest any remaining financial interests in health-related companies or patents that you will have the power to influence, recuse from matters involving your former employers and clients, and, for at least four years after you leave office, not lobby CMS or join the industries that depend on CMS' work," the senator said.

"Entering this role with financial conflicts of interest would undermine your effectiveness and the effectiveness of the programs you are slated to administer."

"By making these commitments, you would increase Americans' trust in your ability to serve the public interest during your time at CMS—rather than the special interests of companies in your network," she added.

"You have deep ties to companies that could profit from your decisions at CMS," Warren noted. "You currently serve as a managing member or adviser of multiple healthcare and pharmaceutical firms with a financial stake in CMS policy, including how the agency sets payment rates and coverage determinations for Medicare and Medicaid."

Warren continued:

You also use your public platforms—including your website, TV show, TikTok, and Instagram pages—to promote drugs, such as Ozempic, produced by pharmaceutical companies that are currently seeking expanded CMS coverage approval and that are subject to government drug negotiations—which you would be responsible for conducting. You have been paid to push your show's viewers to enroll in the private alternative to Medicare, Medicare Advantage—a program run by private health insurers that overcharged CMS by at least $83 billion in 2024 alone.

Doctors have critiqued you for allegedly "promoting quack treatments and cures in the interest of personal financial gain." Furthermore, much of your financial portfolio (worth at least $98 million) is invested in healthcare and pharmaceutical companies whose value is tied to CMS' regulatory work.

Last December, the watchdog Accountable.US revealed that Oz had invested as much as $56 million in three companies with direct CMS interests. In 2022, Oz's single biggest healthcare holding was up to $26 million in Sharecare, a digital health company Oz co-founded, and which became the exclusive in-home supplemental care program for 1.5 million Medicare Advantage customers.

On Tuesday, the consumer advocacy group Public Citizen published a research brief examining the hundreds of millions of dollars spent on political lobbying by Medicare Advantage companies ahead of Oz's confirmation hearing, which is scheduled for Friday morning.

Warren and other Democratic lawmakers previously pressed Oz on his advocacy for Medicare privatization, including a 2020 call for enrolling all U.S. seniors in Medicare Advantage plans.

Last month, Oz pledged to divest from insurance companies and drugmakers and step down from his advisory positions if his nomination is confirmed.

"I appreciate that you have agreed to divest much of your portfolio and resign from your advisory posts," Warren wrote. "Still, given your close ties to the industry that you would regulate, if you are confirmed, the public would have reason to question your impartiality and commitment to serving the public's interest."