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"Given Dr. Oz's history of basically acting as a salesman for Medicare Advantage, putting him in charge of regulating these middlemen would be like letting the fox guard the henhhouse," said one Democratic senator.
The U.S. Senate Finance Committee voted along party lines Tuesday to advance the nomination of Dr. Mehmet Oz, President Donald Trump's nominee to head the Centers for Medicare and Medicaid Services, a move that drew widespread rebuke from consumer advocates and others who pointed to the celebrity surgeon's advocacy for private Medicare Advantage plans and other red flags.
The Finance Committee voted 14-13 to send Oz's nomination to a full Senate vote, with Chair Mike Crapo (R-Idaho) hailing the former television talk show host's "years of experience as an acclaimed physician and public health advocate."
However, Sen. Ron Wyden (D-Ore.), the committee's ranking member, said he voted against Oz, explaining that the nominee "was given the chance to assure the American people that he would not be a rubber stamp for Republicans' plans to gut Medicaid" and raise Affordable Care Act premiums, but "at every turn, he failed the test."
"No senator should be fooled by the snake oil Oz is selling."
Wyden said he is "deeply concerned about Dr. Oz's history marketing Medicare Advantage plans," which, as frequent Common Dreams opinion contributor Thom Hartmann explained, are not part of Medicare but are a private health insurance "scam" created by a Republican-controlled Congress and signed into law by then-President George W. Bush "as a way of routing hundreds of billions of taxpayer dollars into the pockets of for-profit insurance companies.
Wyden added, "Given Dr. Oz's history of basically acting as a salesman for Medicare Advantage, putting him in charge of regulating these middlemen would be like letting the fox guard the henhouse."
Last December, the watchdog Accountable.US revealed that Oz had invested as much as $56 million in three companies with wdirect CMS interests. In 2022, Oz's single biggest healthcare holding was up to $26 million in Sharecare, a digital health company he co-founded, and which became the exclusive in-home supplemental care program for 1.5 million Medicare Advantage customers. Nick Clemens, Oz's spokesperson on the Trump transition team, told USA TODAY last December that Oz sold his stake in Sharecare.
These and other apparent conflicts of interest prompted denunciations from progressive groups and Democratic lawmakers including Sen. Elizabeth Warren (D-Mass.), who also called attention to Oz's promotion of "quack treatments and cures in the interest of personal financial gain."
Robert Weissman, co-president of the consumer advocacy group Public Citizen, said Tuesday: "Mehmet Oz is fundamentally unqualified for the position of administrator of the Centers for Medicare and Medicaid Services and should never have been nominated for the position based on his conflicts of interest alone. The Senate Finance Committee should have unanimously rejected his confirmation."
Weissman continued:
Under Oz's watch, could strip crucial healthcare services through Medicare, Medicaid, and the Affordable Care Act could be stripped from hundreds of millions of Americans. As he showed in his confirmation hearing, Oz would seek to further privatize Medicare, threatening access to care for tens of millions of Americans. Privatized Medicare Advantage plans deliver inferior care and cost taxpayers nearly $100 billion annually in excess costs.
He also refused to commit to push back on efforts to slash Medicaid, which would harm access to care for millions—especially the poor and vulnerable—just so Trump and [and his adviser Elon] Musk can give tax breaks to their billionaire buddies.
"We need a CMS administrator who believes in the importance of protecting crucial health programs like Medicare and Medicaid hand would put patients ahead of corporate profits," Weissman added. "We can only hope that sanity prevails when Oz comes for a vote before the full Senate. No senator should be fooled by the snake oil Oz is selling."
Tuesday's vote came as congressional Republicans seek to
slash $880 billion from programs overseen by the House Energy and Commerce Committee—which include Medicaid—in order to help pay for Trump's $4.5 trillion tax cut, which experts say would overwhelmingly benefit the ultrawealthy and corporations.
The exchange on the Senate floor came after the Finance Committee chair blocked passage of the Vermont Independent's bill.
U.S. Senate Finance Committee Chair Mike Crapo on Tuesday blocked passage of Sen. Bernie Sanders' legislation to expand Medicare to cover dental, hearing, and vision care for tens of millions of American seniors, but the bill's sponsor got the panel leader to publicly agree to further discuss the issue.
Sanders (I-Vt.) took to the Senate floor Tuesday afternoon to ask for unanimous consent to pass the Medicare Dental, Hearing, and Vision Expansion Act, which is spearheaded in the House of Representatives by Congressman Lloyd Doggett (D-Texas).
"In the richest country in the history of the world, it is unacceptable that millions of seniors are unable to read because they can't afford eyeglasses, can't have conversations with their grandchildren because they can't afford hearing aids, and have trouble eating because they can't afford dentures," Sanders said in a statement.
"That should not be happening in the United States of America in the year 2025," he continued. "The time is long overdue for Congress to expand Medicare to include comprehensive coverage for the dental, vision, and hearing care that our seniors desperately need."
After Crapo (R-Idaho) rose to stop the bill from advancing, he and Sanders had a brief exchange in which the Republican agreed to working on achieving the "outcome" of the federal healthcare program covering dental, vision, and hearing.
In Sanders' remarks on the Senate floor about his bill, he sounded the alarm about efforts by President Donald Trump, billionaire Elon Musk, and congressional Republicans to cut government healthcare programs and Social Security.
"Yeah, we have more nuclear weapons than any other country, we have more billionaires than any other country, but we also have one of the highest rates of senior poverty of any country on Earth. We might want to get our priorities right," said Sanders, who has long fought for achieving universal healthcare in the United States via his Medicare for All legislation.
"While my Republican colleagues would like to make massive cuts to Medicaid in order to provide more tax breaks to billionaires, some of us have a better idea," he said. "We think that it makes more sense to substantially improve the lives of our nation's seniors by expanding Medicare to cover dental, vision, and hearing benefits."
To pay for his expansion plan, Sanders calls for ensuring that Medicare pays no more for prescription drugs than the Department of Veterans Affairs and addressing the tens of billions of dollars that privately administered Medicare Advantage plans overcharge the federal government annually.
In a statement about the bill, Doggett highlighted that "this expanded care could help prevent cognitive impairment and dementia, worsened chronic disease, and imbalance leading to falls with deadly consequences. This is an essential step to fulfilling the original promise of Medicare—to assure dignity and health for all."
Welcoming their renewed push for Medicare expansion, Public Citizen healthcare advocate Eagan Kemp declared that "at the same time Trump and his cronies in Congress try to rip healthcare away from millions and push for further privatization of Medicare, Sen. Sanders and Rep. Doggett are showing what one of our top priorities in healthcare should be—improving traditional Medicare."
"The introduction of this legislation is an important step to ensure Medicare enrollees can access the care they need, and we hope that Congress will act quickly to pass these commonsense reforms," Kemp added. "Healthcare is a human right."
Earlier Tuesday, in anticipation of Crapo's committee holding a confirmation hearing for Dr. Mehmet Oz, the former television host Trump has nominated to lead the Centers for Medicare and Medicaid, Public Citizen released a research brief about the hundreds of millions of dollars Medicare Advantage companies have spent on lobbying.
"If Oz is confirmed as the CMS administrator," Kemp warned, "attacks on traditional Medicare are likely to move into overdrive."
"Did a Big Pharma CEO write these talking points for you on the back of a campaign check?" one critic asked Republican Sen. Marsha Blackburn.
Polling data released this week shows that nearly 90% of Republican voters support allowing Medicare to negotiate drug prices directly with pharmaceutical companies.
But congressional Republicans—many of whom receive substantial funding from the pharmaceutical industry—have staked out the opposite position, bashing the Biden administration's rollout of the initial list of medications that will be subject to price negotiations and parroting drugmakers' arguments against the popular reforms.
"The Inflation Reduction Act's socialist drug price controls will stunt the development of lifesaving treatments and cures while granting the government more unnecessary control over Americans' lives," Sen. Marsha Blackburn (R-Tenn.) wrote on social media, invoking the well-worn and misleading narrative that curbing medicine costs would stifle innovation.
Blackburn received $215,500 in campaign donations from pharma and other health product PACs between 2017 and 2022, according to OpenSecrets.
"Did a Big Pharma CEO write these talking points for you on the back of a campaign check?" Tennessee State Rep. Gloria Johnson (D-90) wrote in response to Blackburn. (Johnson is currently exploring a U.S. Senate run against the Republican.)
Every GOP lawmaker in the U.S. House and Senate voted against the Inflation Reduction Act (IRA), which requires Medicare to negotiate the prices of a subset of high-cost prescription drugs. After the legislation passed, Republicans swiftly began working to roll it back, taking specific aim at Medicare's new authority to negotiate drug prices, which are far higher in the U.S. than in other wealthy nations.
Republican presidential candidates—including former President Donald Trump, the frontrunner for the GOP nomination—have also vocally criticized the law and suggested they would work to repeal it if they win in 2024.
Earlier this week, the Centers for Medicare and Medicaid Services listed the first 10 drugs it plans to negotiate, drawing predictable backlash from the pharmaceutical industry, which lobbied against the IRA's passage and is now suing over the drug pricing provisions. Several of the drugs included on the initial list were already set to face generic competition in the coming years.
The Congressional Budget Office has estimated that the IRA's drug pricing reforms will save Medicare $160 billion over the next decade.
"Any effort by far-right Republicans to paint lowering the costs of prescription drug prices for Americans as a bad thing is laughable."
With President Joe Biden looking to make the drug price negotiations a centerpiece of his 2024 reelection campaign, Republican strategists are urging the GOP to aggressively counter the White House with messaging that mirrors industry claims about the IRA's potential impact on innovation—claims that advocates have long dismissed as false and self-serving.
"Republicans have to figure out how to go after it," Joe Grogan, a Republican strategist who served as a domestic policy adviser for Trump, told Politico. "They go after it by taking it head on: it is killing clinical programs, fundamentally restricting the amount of treatments."
Some GOP lawmakers are taking just that approach.
Sen. Mike Crapo (R-Idaho), whose campaign received $253,400 from pharma and health product PACs between 2017 and 2022, said in a statement Tuesday that Medicare price negotiations "risk reversing decades of progress on bringing lifesaving treatments and medical breakthroughs to American patients."
Rep. Jason Smith (R-Mo.), who has received donations from drug companies that are suing the Biden administration over the price negotiations, added that "the Biden administration is trying to take a victory lap while at the same time they are pricing seniors out of their healthcare and ensuring future cures never reach those who need them."
A 2021 report by Patients for Affordable Drugs concluded that "Big Pharma's innovation argument just does not stand up to scrutiny," noting that "the money that U.S.-based drug companies make by charging Americans high prices is 76% greater than what's needed to fund their entire global research and development expenditures."
Democrats have vowed to combat attempts by the pharmaceutical industry and Republicans to sabotage or repeal the IRA, which represents a modest effort to rein in drugmakers' power to drive up prices.
"The products that will now be subject to negotiation are used by millions of seniors in Medicare each year, costing each of them thousands of dollars," said Sen. Ron Wyden (D-Ore.), chair of the Senate Finance Committee. "I will be following the negotiation process closely and will fight any attempt by Big Pharma to undo or undermine the progress that's been made."
Rep. Raja Krishnamoorthi (D-Ill.) argued Wednesday that "any effort by far-right Republicans to paint lowering the costs of prescription drug prices for Americans as a bad thing is laughable."