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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free 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.
-
$40,000 CD vs $40,000 High-Yield Savings Account - 3 Things Savers Should Consider Now
Both options offer risk-free methods to grow your savings. Learn how much you can earn with each, how they differ and which one suits you best.
-
I'm 51 and my portfolio is up. I'm planning to retire at 60 and want to start moving out of stocks. Is that smart?
We ask financial experts for advice.
-
I'm 51 and My Portfolio Is Up. I'm Planning to Retire at 60 and Want to Start Moving out of Stocks. Is That Smart?
We ask financial experts for advice.
-
Gray Divorce Can Throw Your Retirement a Curveball: What to Know
If you're entering retirement and going through a divorce at the same time, you've got some work to do to shore up your long-term financial security.
-
Quiz: Do You Know What Medicare Gives You for Free?
This quiz tests your knowledge of the services that Medicare provides at no cost to you.
-
Optimize, Grow, Retain: The Power of Annual Client Reviews
Financial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
Confused About the New COVID Vaccine and Medicare? What You Need to Know
Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams Now
Beyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Want To Retire at 55? See If You Can Answer These Five Questions
Who said you can’t retire at 55? If you say yes to these questions, you may be on your way to an early retirement.