**Trump Selects Dr. Oz for Major Healthcare Role, Signaling Push for Private Medicare**

President-elect Donald Trump surprised many this week by appointing Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services (CMS), an agency responsible for overseeing healthcare programs covering approximately 160 million Americans. With this appointment, Trump has chosen not only a well-known TV personality but also a fervent advocate for expanding private sector involvement in Medicare.

Dr. Oz, famous for his daytime talk show, is known for promoting controversial medical advice rather than his expertise in healthcare policy. Nonetheless, he has been an outspoken supporter of Medicare Advantage, a federal program allowing seniors to opt for private coverage as an alternative to the traditional Medicare system. This program is popular but has its critics who argue it limits accessible healthcare by providing smaller networks of doctors and requiring prior authorization for certain treatments.

The decision to place Oz in a pivotal healthcare role breaks from the norm of appointing experienced bureaucrats or policy experts. Under Trump's previous administration, the role was held by Seema Verma, a known opponent of Obamacare and experienced in shaping state Medicaid programs.

Oz's enthusiasm for Medicare Advantage is well-documented. He has featured segments on his TV show sponsored by Medicareadvantage.com, encouraging viewers to explore plans with benefits like $0 premiums and free hearing aids. Additionally, during the 2020 COVID-19 pandemic, he co-authored an article in Forbes advocating a universal health insurance model based on Medicare Advantage, proposing it be funded via a 20% payroll tax.

Currently, more than half of all Medicare beneficiaries are enrolled in Medicare Advantage plans. These plans are appealing due to their typically lower premiums and additional benefits, which traditional Medicare does not cover. However, the private plans often face criticism for their limited doctor networks and the denial of certain treatments, which critics say delays necessary care.

Dr. Oz's appointment could pave the way for more significant changes within Medicare Advantage. He may influence CMS regulatory practices, particularly regarding advertising and marketing, which have been tightly controlled under the Biden administration. Oz may take a more lenient stance, potentially allowing for a broader array of marketing tactics.

Furthermore, Oz will have a role in the annual rate-setting process for Medicare Advantage plans, which specifies how much these plans receive per enrollee. By adjusting this rate, he could effectively increase profits for insurance companies while expanding the program’s benefits, an approach likely to please many seniors despite concerns over long-term costs.

Studies have shown that the government spends more per enrollee in Medicare Advantage than in traditional Medicare, partly due to how insurers manipulate the payment system. For instance, the Committee for a Responsible Federal Budget projected that this could lead to an overpayment of between $810 billion and $1.6 trillion over the next decade. This adds pressure on Medicare’s trust fund and could result in higher premiums for traditional Medicare.

Despite President Biden's administration taking steps to reduce these costs, such as a minor 0.16% cut in the base pay rate for Medicare Advantage plans this year, Republicans have staunchly opposed such measures. Given Oz's past support for the program, healthcare experts are skeptical that Trump's administration will address these overpayments, even with stated intentions to cut waste and fraud.

In summary, Dr. Oz's appointment to lead CMS underscores a potential shift towards reinforcing Medicare Advantage. While this may boost short-term benefits for enrollees, it raises questions about the long-term financial sustainability of Medicare.