Dr. Mehmet Oz, President Donald Trump’s nominee to lead the Centers for Medicare and Medicaid Services (CMS), may have “significantly underpaid his Social Security and Medicare taxes” in recent years, according to a memo from Democratic staff on the Senate Finance Committee that was obtained by CNN.
A spokesperson for Oz refuted the claims, stating that he is in full compliance with the law.
During his confirmation hearing before the committee on Friday, Oz was accused of paying “negligible” Social Security or Medicare taxes in 2022 and none in 2023—an alleged tax avoidance totaling $440,000, according to the memo and Sen. Ron Wyden, the committee’s ranking member. If confirmed, Oz would be responsible for overseeing Medicare, which, along with Medicaid and the Affordable Care Act insurance exchanges, provides healthcare coverage to over 160 million Americans.
The memo states that Oz avoided certain taxes—including the self-employment tax (SECA)—on income from his media company, Oz Property Holdings. “What that means is the person nominated to run Medicare believes it’s acceptable not to contribute to Social Security and Medicare like nurses and firefighters do with every paycheck,” Wyden said during the hearing.
Oz’s accountant told Democratic staff that his tax position relied on the “limited partner” exception, which exempts certain income from self-employment taxes. However, Democratic staff argued that Oz was actively involved in his company, contradicting the Treasury Department’s position. Oz reportedly told staffers he would not amend his tax returns.
“The Office of Government Ethics has conducted an extensive review of Dr. Oz’s finances as part of the regular vetting process. OGE has transmitted to the Senate a letter indicating that any potential conflicts have been resolved, and he is in compliance with the law,” said Oz’s spokesperson, Christopher Krepich, in a statement to CNN.
At least one tax expert suggested Oz’s approach is legally permissible but aggressive. “Dr. Oz’s position is aggressive, and one that I would not recommend. I would label Dr. Oz’s a dodge, but not illegal,” said Steve Rosenthal, a former senior fellow at the Urban-Brookings Tax Policy Center.
The White House did not immediately respond to a request for comment.
A cardiothoracic surgeon and longtime television host, Oz faced repeated questions during the hearing about Medicaid, which covers more than 72 million low-income Americans. House Republicans are expected to push for funding cuts to help extend the Trump tax cuts from 2017.
Democratic senators emphasized Medicaid’s critical role in supporting children, mothers, people with disabilities, and healthcare facilities. Sen. Maggie Hassan (D-NH) pressed Oz on whether he supports the Republican budget proposal, which she said would “terminate the health coverage of millions of Americans, including as many as 30,000 children in my state.” She also noted that Medicaid covers 40% of births nationwide and half of those in rural areas.
“I don’t want children losing health care,” Oz responded, adding that he believes investments in maternal care are necessary to improve services.
However, Oz also aligned with several GOP critiques of Medicaid. A Republican Senate candidate in Pennsylvania in 2022, he expressed support for adding work requirements to Medicaid—an approach critics argue has led to coverage losses in states that attempted to implement it. Arkansas’ work requirement was struck down in court, while Georgia’s remains in effect.
Throughout the two-and-a-half-hour hearing, Oz addressed other contentious issues, including the role of technology in modernizing CMS operations. He advocated for using artificial intelligence to streamline the prior authorization process, allowing physicians and patients to receive faster insurance decisions. However, when Sen. Tina Smith (D-MN) raised concerns about insurers using AI to deny care, Oz agreed that human oversight should remain in place.
Medicare Advantage, a program in which private insurers administer Medicare benefits, also came under scrutiny. Sen. Elizabeth Warren (D-MA) noted that the program costs taxpayers more than traditional Medicare due in part to “upcoding,” where insurers exaggerate patients’ conditions to receive higher payments. Oz acknowledged that upcoding can be fraudulent and emphasized the need for stricter oversight.
Democrats also scrutinized the effects of layoffs and privacy issues under Elon Musk’s DOGE. Sen. Thom Tillis (R-NC) raised questions about potential bureaucratic challenges, noting that CMS could be hindered by having “two different bosses,” alluding to Musk. Oz responded by emphasizing his commitment to operational improvements.
