Medicare and Medicaid Employees Offered New Buyouts: What You Need to Know
Federal HHS workers who inspect food, research diseases and administer Medicare and Medicaid are offered $25,000 buyouts


Most of the 80,000 federal workers in the Health and Human Services Department (HHS) were emailed an offer to leave their jobs for (up to) a $25,000 payment, as part of President Trump’s government cuts. The mass email was sent to staff at the Centers for Disease Control and Prevention in Atlanta and the National Institutes of Health and the Food and Drug Administration, both in Maryland.
Federal employees cannot start opting in until Monday and have until 5 pm on Friday, March 14, to submit a response to the voluntary separation offer. Most federal employees received a deferred resignation offer this past January that came with eight months of pay. Thousands of probationary employees, too, have been fired across federal agencies, including at HHS. (Our article on Trump buyouts looks at this further).
The HHS has an annual budget of about $1.7 trillion that is mainly spent on healthcare coverage for millions of people enrolled in Medicare and Medicaid. According to Data.CMS.gov, Medicare currently serves 68.2 million people, while Medicaid provides coverage to over one in five people living in the U.S., or around 70 million enrollees.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In an interview last month, Robert F. Kennedy Jr., Trump’s new health secretary, hinted at plans for deep cuts to the staff. In 2024, he promised to immediately clear out 600 employees at the National Institutes of Health (NIH), the nation’s biomedical research arm. “I have a list in my head,” Kennedy said, as reported by the Associated Press, “of potential firings at the agency. He said some workers “made really bad decisions” on nutrition guidelines.
These cuts come at a time when the CDC is assisting with a measles outbreak in West Texas and New Mexico and as lawmakers are debating deep cuts to Medicaid in the federal budget. Since taking office, the Trump administration, with the help of DOGE, has been trying to cut federal workers in what it says is an effort to cut costs, fraud and waste.
As of Sunday, March 9, there was no immediate comment from HHS. In the email, HHS workers are directed to contact their local human resources office to submit for the voluntary separation.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

For the past 18+ years, Kathryn has highlighted the humanity in personal finance by shaping stories that identify the opportunities and obstacles in managing a person's finances. All the same, she’ll jump on other equally important topics if needed. Kathryn graduated with a degree in Journalism and lives in Duluth, Minnesota. She joined Kiplinger in 2023 as a contributor.
-
Last Call for Fortnite Refunds: Parents Can Still File a Claim
The FTC is sending out $126 million in refunds to families whose kids were charged for unwanted items in Fortnite — and there’s still time to file a claim.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade Talks
Despite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
Will an AI Robot Take Care of You in Old Age?
AI Robots may be just the help older adults and their caretakers need for a host of tasks. Just don't expect it to be a cute little humanoid — yet.
-
Technology Unleashes the Power of Year-Round Tax-Loss Harvesting
Tech advancements have made it possible to continuously monitor and rebalance portfolios, allowing for harvesting losses throughout the year rather than just once a year.
-
The Fiduciary Firewall: An Expert's Five-Step Guide to Honest Financial Planning
Armed with education and awareness, you can avoid unethical people in the financial industry by seeking fee-only fiduciaries and sharing your knowledge with others.
-
What is the IRMAA (Income-Related Monthly Adjustment Amount)?
IRMAA is a surcharge added to your Medicare Part B and Medicare Part D prescription drug coverage premiums if your income is above a certain level. Here's what you need to know.
-
Want to Avoid the IRMAA? Consider a Roth Conversion
If you make above a certain income, expect to pay more for Medicare, unless you take steps to lower your income. Here's how.
-
I'm 52 With $2.1 Million in Retirement Savings: Can I Afford a Second Home?
Buy a second home now, or wait until retirement? It depends.
-
Medicare Premiums 2026: Projected IRMAA Brackets and Surcharges for Parts B and D
Will you have to pay the monthly Medicare premium surcharge next year? It depends on a few factors.