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- Dr. Mehmet Oz was chosen by Donald Trump to lead Medicare and Medicaid.
- Oz and Robert F. Kennedy Jr. aim to address health care system issues and chronic diseases.
- Trump's announcement affected Humana shares, and Oz's appointment requires Senate confirmation.
WASHINGTON — President-elect Donald Trump said on Tuesday that he had chosen television personality and surgeon Dr. Mehmet Oz to serve as administrator of the Centers for Medicare and Medicaid Services, a wide-reaching agency with annual spending of $2.6 trillion.
Trump, who endorsed Oz in his unsuccessful run in Pennsylvania for the U.S. Senate in 2022, said he would work closely with Robert F. Kennedy Jr., who was nominated to lead the Department of Health and Human Services.
Trump said the pair would take on "the illness industrial complex, and all the horrible chronic diseases left in its wake" as well as cutting what he called waste and fraud.
"Our broken Healthcare System harms everyday Americans, and crushes our Country's budget," Trump said in a statement.
The agency runs Medicare, the federal health insurance program for people aged 65 or older and the disabled. The office also oversees Medicaid, the state-based health insurance program for low-income people, which is jointly funded by states and the federal government. The two programs provide health insurance for over 140 million Americans.
It also handles much of the enrollment in income-based government-subsidized health insurance under the Affordable Care Act, also known as Obamacare. Trump and other Republicans have previously tried to repeal the law but now say they only seek to overhaul it.
Oz was a regular Fox News commentator during the COVID-19 pandemic and a proponent of unproven treatments for COVID-19 including hydroxychloroquine, an anti-malaria drug whose use against the disease was also backed by Trump.
Oz challenged the Biden administration's COVID-19 pandemic policies on social media, including mask policies, saying they ignored the science and were based on missing data.
In 2020, he was a proponent of expanding Medicare Advantage plans in which insurers manage health care benefits paid for by the government to all Americans who were not enrolled in Medicaid in a column published in Forbes magazine.
News of the appointment pushed shares of insurer Humana up 1.8% at $282.75. Humana is a provider of private Medicare Advantage plans.
Trump promised during his campaign not to cut Medicare but is expected to let federal subsidies for Medicaid expire at the end of 2025.
After Kennedy was named to the job last week, Oz told Fox News that he knew the Health and Human Services secretary nominee personally. The position is subject to Senate confirmation.
