Significant Job Cuts at the Centers for Medicare & Medicaid Services Amid Restructuring
An aerial view of the Centers for Medicare & Medicaid Services building in Woodlawn, Maryland, March 19, 2025.
Kayla Bartkowski | Getty Images
The Centers for Medicare & Medicaid Services (CMS) has initiated substantial job cuts affecting its minority health office and several other divisions in response to organizational changes led by Robert F. Kennedy Jr. This restructuring is part of a broader plan to reshape the Department of Health and Human Services (HHS).
During a recent virtual meeting, CMS’s acting Administrator Stephanie Carlton outlined the extent of the reductions, which were revealed after notifications were sent to HHS employees regarding their job statuses. Under Kennedy’s proposed changes, the HHS is set to reduce its workforce by 10,000 positions overall, including 300 roles at CMS alone, with deeper cuts anticipated across other federal agencies.
Impact on Workforce and Services
Historically, CMS manages health insurance programs affecting approximately 160 million Americans. Recent cuts underscore a trend where the Trump administration sought to mitigate perceived programmatic impacts, particularly concerning Medicare. However, following a statement from Kennedy, some personnel and programs may be reinstated as he acknowledged potential errors in the restructuring process.
Carlton clarified that while some aspects of the job cuts were finalized, the agency has committed to retaining critical teams in communications, human resources, and information technology, especially citing the importance of data security.
Overview of the Cuts
Carlton identified the following offices as being impacted:
- Office of Minority Health: This office is tasked with addressing health disparities and enhancing health outcomes for minorities. Its closure raises legal concerns as it was established under the Affordable Care Act, suggesting that fully dismantling it may contravene existing legislation.
- Office of Program Operations & Local Engagement: Responsible for the administration of Medicare and Medicaid, this division faced significant employee reductions due to overlapping missions within the agency.
- Grants and Contracts Management Office: This office also experienced cuts, which could affect the agency’s ability to manage its financial programs effectively.
- Medicare-Medicaid Coordination Office: This office’s work will be redistributed among remaining staff or outsourced, which may impact the service quality for individuals eligible for both programs.
Carlton refrained from specifying whether current personnel, including Dr. Martin Mendoza, the director of the office of minority health, would be affected. Despite the restructuring, Carlton emphasized the continuing obligation of CMS to fulfill its mandates to reduce health disparities.
Contextual Challenges
This significant workforce reduction occurs amid mounting public health challenges, including a severe measles outbreak and avian flu threats impacting both wildlife and livestock, which have raised alarms over food safety and public health policy. Furthermore, anticipated reductions in FDA initiatives aimed at enhancing bird flu testing underscores how deeper cuts at HHS may affect critical public health efforts.