Will Dr. Oz Push Medicare Advantage Plans Now That He's Confirmed?

There are changes afoot in how government agencies will oversee health care for retirees and older adults. President Donald Trump tapped physician and TV personality Dr. Mehmet Oz to lead the Centers for Medicare & Medicaid Services (CMS), and on April 3, he was confirmed on a party-line vote of 53 to 45.

Oz has already proposed a vision for Medicare that would increase private-sector involvement.

Like his boss — head of the Department of Health and Human Services Robert F. Kennedy Jr. — Oz is a controversial pick. The two have been criticized for sometimes supporting unproven remedies rather than scientific evidence.

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For example, Oz has a history of promoting questionable supplements and unproven weight loss strategies, and prominent doctors have criticized Oz for his “disdain for science and for evidence-based medicine.”

Although there remains some question about how RFK Jr. might change Medicare and your retirement, Oz has been much more vocal about how to lead the CMS. This is particularly important given that the trust that funds Medicare could be depleted by 2036. Oz will likely try to steer retirees and older Americans toward one specific type of Medicare coverage.

Medicare Advantage plans

Medicare enrollees must choose between original Medicare (Parts A and B plus a Part D drug plan) and Medicare Advantage (MA). Advantage plans are those offered by private insurers and must provide at least the same level of coverage as original Medicare. Many seniors are drawn to Medicare Advantage plans because they commonly offer supplemental benefits beyond what original Medicare covers.

In 2024, an estimated 99% of Medicare Advantage plans offered eye exams and/or glasses as a supplemental benefit, reports the Kaiser Family Foundation, while 98% offered dental care and 96% offered hearing exams and/or aids. These are services that original Medicare will not pay for, which commonly leaves enrollees with substantial out-of-pocket costs unless they enroll in a Medigap plan.

While the costs associated with Medicare Advantage vary by plan, in 2024, 75% of enrollees paid no added premium besides the mandatory fee for Part B.

As of 2024, roughly 32.8 million people were enrolled in a Medicare Advantage plan. That accounts for 54% of the Medicare-eligible population. Now that he's confirmed, Oz will likely try to increase these numbers.

Oz's support for MA plans

Oz has long been a staunch supporter of Medicare Advantage plans. In a 2020 Forbes article he co-authored, Oz said that Medicare Advantage enrollees get superior care thanks to competing plans. As the article stated, Medicare Advantage offers "much better benefits, care coordination, quality controls, levels of performance accountability and cash-flow models for implementing and delivering continuously improving models of care."

The article went further, though, proposing a new "Medicare Advantage for All" program that would provide coverage to every American who is not eligible for Medicaid.

Oz proposed funding such a program with "an affordable 20% payroll tax" to be split evenly among employees and their employers, similar to how Federal Insurance Contributions Act (FICA) taxes are paid today. He also argued that a shift toward Medicare Advantage for All would save taxpayers money.

Whether the program would realize those savings is not settled. A 2023 report by the Physicians for a National Health Program found that Medicare Advantage overcharges taxpayers by anywhere from $88 billion to $140 billion per year.

Even if Medicare Advantage for All doesn’t take off, it’s likely Oz will, at the very least, try to expand Medicare Advantage enrollment. Whether that includes improvements to these plans, however, is yet to be determined.

Medicare Advantage plans have their flaws

Many consumers like their Medicare Advantage plans, but problems have been mounting.

Prior authorization. Most Medicare Advantage plans subject enrollees to prior authorization requirements that commonly lead to delays in care and, in some cases, denials of care.

As of 2024, 99% of Medicare Advantage enrollees participated in plans with prior authorization requirements. These requirements can apply to expensive diagnostic tests, durable medical equipment and inpatient hospital stays. By contrast, original Medicare rarely requires prior authorization, eliminating bottlenecks and giving seniors quicker access to care.

Limited provider choice. Medicare Advantage plans also commonly limit participants to narrow provider networks, whereas enrollees in original Medicare can see any provider in the country where Medicare is accepted.

Hospital systems are increasingly cutting ties with some Medicare Advantage plans due to factors such as slow reimbursements and excessive prior-authorization requirements. As of early 2025, 22 health systems have dropped Medicare Advantage plans, according to Becker's Hospital Review.

Higher costs for Advantage plans .... sometimes. There are also conflicting reports as to whether patients face higher out-of-pocket costs under original Medicare vs Medicare Advantage.

Estimated monthly out-of-pocket costs were 18% to 24% lower in Medicare Advantage than original Medicare for a typical enrollee from 2014 to 2019, according to a November 2024 Health Affairs study. However, in some cases, original Medicare plus a Medigap supplement could result in lower costs.

Medicare Plans K and L, for example, cap out-of-pocket spending for 2025 at $7,220 and $3,610, respectively. The out-of-pocket maximum for Medicare Advantage plans is $9,350 for in-network services and $14,000 for both in and out-of-network costs in 2025, but some plans set lower limits.

The issue, too, is that as people age, their health care needs tend to increase, and as Medicare Advantage enrollees get sicker, they tend to experience higher levels of coverage denials. The rate of older adults in the final year of their lives leaving Medicare Advantage and switching to original Medicare doubled from 2016 to 2022, per The Wall Street Journal (paywall), netting Medicare Advantage insurers more than $6 billion and sticking taxpayers with the bill.

The Medigap trap. Many people signing up for Medicare Advantage plans don't realize that if they decide to go back to original Medicare, they might not be able to get a Medigap plan for supplemental coverage. That's because Medigap plans are typically only available in most states in the first six months after you become eligible for Medicare.

Conflicts of interest

New appointees under Trump might have conflicts of interest with the Medicare Advantage insurance industry in several ways.

Trump has appointed Don Dempsey as associate director of the Office of Management and Budget's health programs. This position grants Dempsey control over the CMS, and thus Medicare, purse.

Dempsey most recently served as the vice president of policy and research at the Better Medicare Alliance, a lobbying organization for the Medicare Advantage industry. According to the Financial Times (paywall) and Newsbreak, the organization is funded by Humana and UnitedHealth, the two largest Medicare Advantage companies in the U.S.

There's also the question of Oz's ties to health care companies and investments that have helped him amass his personal fortune — ties that present as a conflict of interest for anyone tasked with heading up the CMS. The New York Times puts the value of his business and family ventures at $90 million to $335 million.

In a recent ethics filing, Oz disclosed investments in a broad swath of health-related companies and products. He has said that he would sell his positions in dozens of companies to avoid a conflict of interest. Those include as much as $600,000 in stock in UnitedHealth Group, the nation’s largest provider of the Medicare Advantage plans, which Oz has been known to tout

Oz also pledged to resign from paid advisory positions.

But Oz’s financial entanglements leave questions about the nature of certain business relationships.

“I can’t even tell from his disclosures what direct or indirect arrangements he has,” Kathleen Clark, a law professor at Washington University in St. Louis who specializes in government ethics, told The New York Times. Even if Oz divests from companies that present a conflict of interest, he would also need to extricate himself from years of endorsements.

Christopher Krepich, a spokesman for Oz, said that Oz was cooperating with the Office of Government Ethics and would comply with its rules.

How Medicare might change

As head of the CMS, Oz will likely favor Medicare Advantage plans over Medicare. Project 2025, a controversial Heritage Foundation plan for overhauling the government that now has Trump's support, has proposed making Medicare Advantage the default choice.

Under Oz's lead, the hope is that he’ll also work to improve Medicare Advantage. For example, limiting the number of services subject to prior authorization could help streamline care for older Americans and potentially lead to better outcomes.

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