Elon Musk's Department of Government Efficiency (DOGE) is making waves at the Centers for Medicare and Medicaid Services, gaining access to key payment and contracting systems. Sources say DOGE reps have been digging into the agency's tech and financial flows, looking for inefficiencies, waste, and fraud. They're also assessing CMS's structure and staffing, a move that could shake up one of the most complex and politically sensitive arms of the federal government, which oversees $1.5 trillion in annual healthcare spending.

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Musk's reach into government is expanding fast, with his allies already securing positions at the Treasury Department and USAID. DOGE is pushing for tighter oversight of federal spending, questioning long-standing financial allocations and targeting areas it considers bloated. CMS officials confirm that senior agency veterans are working with DOGE, but uncertainty looms over what this means for Medicare and Medicaid, lifelines for millions of Americans. While DOGE's access is reportedly read-only, its presence signals a potential shift in how these programs are managed.

For investors, this could be a game-changer in the healthcare sector. Increased scrutiny on CMS contracts and reimbursement models might disrupt insurers like UnitedHealth Group (NYSE:UNH), Humana (NYSE:HUM),pharmaceutical giants and service providers, which are reliant on government funding. Dr. Mehmet Oz, tapped to lead CMS, has yet to be confirmed, but his expected arrival could accelerate policy changes. With DOGE in the mix and healthcare spending in the spotlight, investors should brace for potential volatility in key healthcare stocks.