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CMS

Centers for Medicare & Medicaid Services · est. 1965
Official site: cms.gov ↗

Its payment rules effectively set prices across American health care, because private insurers key their rates off Medicare's. Contractors, not federal staff, process its roughly billion-plus claims a year.

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Key facts

FY2025 budget
$1.7T
Share of federal spending
24.1%
Staff (approx.)
5,900
Led by
Administrator

The law behind it

Created byCreated administratively as the Health Care Financing Administration by HHS (then HEW) Secretary's reorganization, March 1977 (42 Fed. Reg. 13262); renamed Centers for Medicare & Medicaid Services in 2001; Administrator's office codified by P.L. 98-369, § 2332 (1984) (SSA § 1117); administers Social Security Act titles XVIII (Medicare), XIX (Medicaid), and XXI (CHIP)

Head appointed42 U.S.C. § 1317(a) (SSA § 1117): Administrator of the Centers for Medicare & Medicaid Services appointed by the President by and with the advice and consent of the Senate; no fixed term (PAS)

Removal standardno statutory protection — at will

Funded underHybrid/trust: Medicare benefits paid from the Federal Hospital Insurance Trust Fund (42 U.S.C. § 1395i) and Federal Supplementary Medical Insurance Trust Fund (42 U.S.C. § 1395t); federal Medicaid share is a mandatory appropriated entitlement (42 U.S.C. § 1396b); agency operations (Program Management) funded by the annual Labor-HHS-Education appropriations act with trust-fund transfers

Congressional oversightHouse Ways and Means (Medicare) and House Energy and Commerce (Medicaid; shared Medicare jurisdiction) · Senate Finance

Inspector generalHHS OIG (PAS establishment IG under the Inspector General Act, 5 U.S.C. ch. 4)

Judicial reviewMedicare claims channeled through agency review then district court under 42 U.S.C. § 405(g)-(h), incorporated by 42 U.S.C. § 1395ii (Shalala v. Illinois Council, 529 U.S. 1 (2000)); Medicaid state-plan disapprovals reviewed directly in the courts of appeals (42 U.S.C. § 1316(a)(3))

How your vote reaches it

Comment on its payment rules at regulations.gov; appeal your own coverage denial through CMS's multi-level appeals process; vote for Congress, which sets Medicare and Medicaid benefits by statute.

Major units

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