^{Source: TheGuardian}

The Centers for Medicare & Medicaid Services (CMS), a critical agency that oversees healthcare for over 160 million Americans, has begun significant workforce reductions under a broader plan to restructure the Department of Health and Human Services (HHS). This sweeping overhaul is being led by Robert F. Kennedy Jr., now at the helm of the U.S. health department, and has sparked concern across health policy and public service communities.

According to internal documents obtained by CNBC, and additional confirmations by Reuters and Politico, CMS's Office of Minority Health and several other essential divisions have been impacted. These layoffs are part of a larger federal health restructuring plan that includes the elimination of 10,000 HHS positions—a quarter of its entire workforce.

Massive HHS Cuts Underway: What We Know

During a virtual all-hands meeting held on Friday, CMS Acting Administrator Stephanie Carlton shared specifics of the job cuts and emphasized that this round of layoffs appears to be complete—for now. While only about 300 CMS employees are being let go directly, the broader HHS reduction effort is extensive, with approximately 10,000 total positions slashed. When combined with the 10,000 voluntary departures since Donald Trump’s return to the presidency, the health department’s staffing is now reduced to around 62,000 employees, down from 82,000 just a year ago.

“This is a painful process that affects people we care deeply about,” said Carlton, “but it’s part of a push toward efficiency across the health department.”

Key Offices Affected at CMS

The most notable layoffs hit the Office of Minority Health, an essential division created under the Affordable Care Act to reduce racial and ethnic health disparities in the U.S. This office has worked with state and federal partners for over a decade to promote equity in healthcare access, conduct critical health outcomes research, and lower the cost and burden of chronic disease in vulnerable populations.

While the office has not been officially dismantled—possibly because doing so may violate statutory requirements—its operations have been significantly diminished. CMS has promised to appoint a new director, but it’s unclear whether Dr. Martin Mendoza, the current director, remains in his role.

Other affected units include:

• Office of Program Operations & Local Engagement (OPOLE): This team led stakeholder engagement and program delivery on the ground. Carlton stated this was “probably the biggest group impacted,” with some units merged or dissolved due to overlapping functions.
• Medicare-Medicaid Coordination Office (MMCO): A vital division serving 12 million dually eligible Americans, focusing on better integrating care across both programs. Work previously handled by this office may now be outsourced or distributed among other CMS departments.
• Grants & Contracts Management Office: Responsible for financial oversight and funding disbursement, this office has also seen job reductions.

Despite these significant losses, CMS confirmed that its Information Technology (IT), Human Resources, and Communications divisions remain intact—particularly due to the sensitivity of the data they handle.

Controversial Leadership Transition: Dr. Oz at the Helm

In another dramatic development, Dr. Mehmet Oz, a former TV personality and Senate candidate, was confirmed by the Senate this week as the new CMS administrator. Carlton noted that his administrative paperwork was expected to be finalized by the end of the week and hinted at an upcoming agency-wide call hosted by Oz on Monday.

Dr. Oz, long known as “America’s Doctor,” has faced criticism from the scientific community for promoting alternative medicines and unproven health supplements. His leadership adds another layer of uncertainty for CMS employees and healthcare advocates.

DEI and Public Health Programs Under Threat

Kennedy’s restructuring aligns with a broader political backlash against diversity, equity, and inclusion (DEI) programs. Several critics argue that these layoffs reflect an ideological agenda rather than budgetary necessity.

“Gutting the Office of Minority Health isn’t just a bureaucratic shuffle—it’s a direct hit on communities that already face the greatest barriers to care,” said Dr. Lisa Cooper, a public health professor at Johns Hopkins.

Experts also warn that this downsizing comes at a precarious time for public health in the U.S. The country is currently facing:

• The worst measles outbreak in over 20 years, with more than 120 cases reported across 17 states in the first quarter of 2025 alone, according to the CDC.
• Ongoing bird flu outbreaks, with confirmed H5N1 cases in U.S. dairy cattle and at least four human infections since February. The FDA has halted bird flu surveillance and testing for milk, cheese, and pet food due to staffing shortages, per Reuters.

Public health leaders are concerned that weakening federal infrastructure during active health emergencies could lead to delays in outbreak response, fewer resources for affected populations, and broader societal consequences.

Political and Legal Ramifications Loom

The Affordable Care Act authorized the creation and protection of many of the programs now being reduced or restructured. Legal experts suggest that shuttering or disabling these programs—especially without congressional approval—could spark lawsuits or legislative backlash.

Moreover, with Medicare and Medicaid accounting for over $1.8 trillion in annual expenditures, concerns about program efficiency versus service degradation are front and center. Critics argue that streamlining efforts should not come at the cost of equity, oversight, or care delivery.

What Comes Next?

While Carlton assured staff that the “painful part” of the cuts may be behind them, the restructuring is ongoing. RFK Jr. acknowledged on Thursday that “mistakes” may happen and some programs or positions could be restored later. However, no such reinstatements have been confirmed at CMS yet.

In a time when public trust in healthcare systems is fragile and disease threats are on the rise, many experts worry that these cuts are more ideological than strategic.

TL;DR:
CMS is undergoing significant changes under the Kennedy-Trump administration’s larger HHS restructuring plan. Key divisions—especially those supporting minority health and dual-eligible Americans—are facing job cuts. The move has raised legal questions, public health concerns, and controversy over the appointment of Dr. Mehmet Oz. With bird flu, measles outbreaks, and weakened federal health oversight, the U.S. faces a critical moment for healthcare leadership.

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