The Centers for Medicare & Medicaid Services (CMS) has initiated significant job cuts within its minority health office and various other divisions, according to Finance Newso reports, amid sweeping changes proposed by Robert F. Kennedy Jr. at the U.S. Department of Health and Human Services (HHS).
In an all-staff virtual meeting held on Friday, CMS acting Administrator Stephanie Carlton disclosed details about which specific offices within the agency would be affected by these layoffs, part of Kennedy’s extensive restructuring efforts throughout HHS.
Finance Newso accessed a transcript of this internal gathering, marking it as the first such meeting since employees received notifications earlier in the week regarding potential job losses due to the ongoing reductions.
Kennedy’s ambitious plan is set to eliminate approximately 10,000 positions within the HHS, including 300 at CMS, with much larger reductions anticipated at other government agencies. CMS is responsible for overseeing health insurance programs that serve around 160 million Americans, among other critical health care functions. The Trump administration previously sought to mitigate the public perception of how cuts would impact the widely-utilized Medicare program.
On Thursday, Kennedy indicated that certain personnel and programs cut across various federal agencies might be reinstated “because we’ll make mistakes,” acknowledging the potential for adjustments to occur after the initial layoffs.
During the Friday meeting, Carlton did not confirm whether any former CMS employees would be brought back. However, she stated that the “painful part of [the cuts] that affects people we care about is finished.” She further clarified, “I don’t want to make promises that nothing will ever happen, but these are definitely the ones I’m aware of,” alluding to the layoffs made at the agency. Carlton stressed that while the decisions were difficult, CMS leadership had to align the agency’s mission with the need for efficiency within HHS.
Additionally, Carlton mentioned that Dr. Mehmet Oz’s appointment as the new head of CMS would be finalized later that day, following his confirmation by the Senate. Oz, known for his television career and as a former U.S. Senate candidate, expressed the desire to hold another staff meeting on the subsequent Monday. Once dubbed “America’s Doctor,” Oz has since gained notoriety for promoting scientific claims regarding health supplements and treatments without substantial evidence.
These job reductions come on top of the approximately 10,000 employees who opted to voluntarily separate from the department since President Donald Trump began his administration, collectively reducing HHS’s workforce by nearly a quarter to around 62,000 employees.
Kennedy’s restructuring plan coincides with the U.S. facing one of the most severe measles outbreaks in over twenty years, alongside international concerns regarding bird flu that has spread throughout wild avian populations and caused outbreaks among poultry and dairy cows. The FDA is reportedly suspending its initiative aimed at enhancing bird flu testing for milk, cheese, and pet food due to staffing reductions, as outlined by Reuters on Thursday.
CMS has not yet responded to requests for comment regarding the job cuts and structural changes.
Impact on Programs at CMS
According to Carlton, the office dedicated to minority health was significantly impacted by the recent layoffs. This office collaborates with local and federal entities to address health disparities and advance outcomes for all minority populations, as stated on the CMS website. It engages in research and analysis aimed at developing solutions to reduce costs and prevent chronic diseases across the U.S.
Established by the Affordable Care Act over a decade ago, the complete closure of this office could potentially be a violation of the law. Its reduction is perceived as part of a broader ideological challenge by the Trump administration against diversity, equity, and inclusion (DEI) efforts.
Carlton remarked that CMS recognizes its obligation to fulfill the legal responsibilities associated with the office, noting plans to appoint a new director for the office of minority health.
However, she did not explicitly comment on the status of the current director, Dr. Martin Mendoza. A source within HHS, who requested anonymity, informed Finance Newso that Mendoza has not resigned from his role.
Meanwhile, Carlton stated that the Office of Program Operations & Local Engagement, which oversees Medicare and Medicaid programs and interacts with community stakeholders, was among the hardest-hit divisions. She explained that the layoffs targeted areas with overlapping missions to enhance operational efficiency.
Other affected divisions include an office managing the agency’s grants and contracts and the Medicare-Medicaid Coordination Office, which focuses on improving care for individuals eligible for both Medicare and Medicaid.
Carlton indicated that some responsibilities would continue to be managed by other CMS personnel or external partners. Nevertheless, she reassured staff that essential teams in communication, human resources, and information technology would remain intact, highlighting the sensitivity of many of CMS’s data sets as a reason for the IT team’s preservation.
