Business
Senators Grill Dr. Oz on Medicaid Cuts and Medicare Changes
In a hearing on Friday, senators pressed Dr. Mehmet Oz, the TV celebrity nominated to head Medicare and Medicaid, on Republican-led proposals that would significantly affect the health care coverage for nearly half of all Americans.
At his confirmation hearing before the Senate Finance Committee, Dr. Oz bantered with senators in a friendly atmosphere, joking about basketball and allegiances to college teams. He largely escaped tough questions from either side of the aisle, displaying his on-air charm as he deflected Democrats’ most pointed concerns about potentially radical changes in health coverage for not only those 65 and older but also for poor children.
Many senators seemed distracted by the fierce debate over the Republicans’ budget deal to avert a government shutdown, and they dashed in and out of Dr. Oz’s hearing. But he is poised to sail through the Senate for confirmation as the next administrator of the Centers for Medicare and Medicaid Services, an agency with $1.5 trillion in spending.
Senator Elizabeth Warren, Democrat of Massachusetts, made a big deal of his financial conflicts before the hearing. But at the session, she did not press him on those issues. Instead, she focused on his views about whether private Medicare plans are overcharging the government, an area where she and Dr. Oz seemed to agree on the need to tackle potential fraud and waste.
Throughout the hearing, he displayed a facile knowledge of a variety of relevant agency issues, although he repeatedly reverted to stock answers that he would need to study the topic at hand more.
Several lawmakers, mainly Democrats, tried to force Dr. Oz to express his views on the Trump administration’s goals to cut back on health care costs and agency budgets, but he repeatedly sidestepped those minefields.
“It is our patriotic duty to be healthy,” he told senators. “It costs a lot of money to take care of sick people who are sick because of lifestyle choices.”
This refrain is in line with the Make America Healthy Again movement championed by Robert F. Kennedy Jr., the new secretary of the Department of Health and Human Services, and Dr. Oz’s soon-to-be boss if he is confirmed.
Medicare Advantage and privatization
Introductory remarks from Senator Ron Wyden, Democrat of Oregon, held out an initial promise of some challenging questions. He accused Dr. Oz of dodging almost $500,000 in Social Security and Medicare taxes in recent years by using a tax exemption related to limited partnerships, something Democrats concluded after reviewing Dr. Oz’s tax returns. But there were no follow up questions on it.
Mr. Wyden also raised the specter that he was going to grill Dr. Oz on his connection to TZ Insurance Solutions, a for-profit company that sells Medicare Advantage plans to older Americans. Dr. Oz has been a relentless promoter of these private plans, which have been criticized by lawmakers and regulators for systemic overbilling and denying patients care, on his show and YouTube channel.
Dr. Oz, 64, is also a registered broker for TZ Insurance in states across the country, according to a recent investigation into his finances by The New York Times. Again, Mr. Wyden flagged the issue and did not follow up.
Despite concerns by Democrats that Dr. Oz would most likely roll back some of the rules meant to rein in the plans, he instead committed to strong oversight. He acknowledged that some of the brokers now selling these plans were “churning policies,” switching people from one plan to another, regardless of whether the change in coverage benefited them.
“Part of this is just recognizing there’s a new sheriff in town,” Dr. Oz said. “We actually have to go after places and areas where we’re not managing the American people’s money well.”
Several times in the hearing, Dr. Oz addressed bipartisan concerns over whether Medicare Advantage plans are overpaid. In response to questions from a fellow physician, Senator Bill Cassidy, Republican of Louisiana, Dr. Oz mentioned a study suggesting the federal government spends more on the private alternative to Medicare than the government-run program. “It’s upside down,” he said.
“We should examine whether some of the money should be reimbursed to the American people,” Dr. Oz said.
He also expressed interest in solving some of the bipartisan concern over insurers’ use of prior authorization for approving medical procedures by reducing the number of services that would be subject to review.
Republican plans to cut Medicaid
Democrats seemed most frustrated by Dr. Oz’s stance toward Medicaid, the state-federal program that covers 72 million low-income Americans. “All my colleagues want to know, are you going to cut Medicaid?” asked Senator Maria Cantwell, Democrat of Washington.
But Dr. Oz, who has not spoken much about the program he would also oversee as head of the agency, did not answer directly. He said he did not know the details of the Republican budget discussions, in which lawmakers are looking at hundreds of billions of dollars in cuts that could result in people’s loss of coverage as it became more difficult to enroll and states had to shoulder more of the burden.
When questioned by Senator Raphael Warnock, Democrat of Georgia, about Republican efforts to add burdensome monthly paperwork for some people to show they should get benefits, Dr. Oz said he favored the work requirements that Republicans want to limit eligibility. But he agreed with the senator about making sure people who should be eligible for Medicaid were not cut off.
Dr. Oz and his supplement business
There were other subjects senators seemed to veer away from. For instance, Dr. Oz has made tens of millions of dollars over the years promoting dietary supplements, often without any mention of his financial interest. He has been paid by numerous medical and health firms for showcasing their products. Many of those companies would be affected by any decisions he would make as the administrator for the Centers for Medicare and Medicaid Services, and many already benefit from agency funding.
Senator Maggie Hassan, Democrat of New Hampshire, asked him to put a dollar figure on exactly what he has made from promoting supplements on his daytime TV show. He said he was not paid anything. He started to explain that Sony Pictures distributed the show, and that it was the entity paid by these companies (which in turn paid him), but he was cut off. Ultimately, Ms. Hassan was unable to extract anything meaningful from him and moved on.
Patient privacy and the DOGE intrusion
In the hearing, Mr. Wyden pressed Dr. Oz about the access granted to Elon Musk’s so-called Department of Government Efficiency to Americans’ private medical information. Mr. Wyden raised concerns about the need to protect people’s privacy given the department’s potential ability to view personal health and medical data. Despite his repeated questions, he said, the Trump administration had so far not addressed those concerns. Surprisingly, Dr. Oz said he had no discussions with the administration about what Mr. Musk’s team was doing as it inspected agency information, but he promised to “address what is going on.”
Measles
The measles outbreak in Texas and New Mexico has heightened concerns and leveled significant criticism at the response by Mr. Kennedy and the Trump administration. Senator Ben Ray Luján, Democrat of New Mexico, asked Dr. Oz whether he believed the measles vaccine was safe. Dr. Oz said he did, but when the senator followed up by asking whether it was effective, Dr. Oz stepped back and said that judging individual vaccines and their recommendations for use would not be under his purview but under that of the Centers for Disease Control and Prevention.
“My job, if confirmed, is to make sure we pay for those vaccines,” he said.
Business
San Diego County agency selling water to keep its high rates in check
San Diego County’s water agency is selling some of its water to another Southern California agency to help limit increasingly high water costs for 3.3 million people.
The water is going to Western Municipal Water District, which serves a growing area of nearly 1 million people in Riverside County, including Corona, Riverside and Temecula.
The San Diego County Water Authority will transfer at least 10,000 acre-feet of water per year over the next 21 years, enough for about 30,000 typical households.
The agencies said the deal will be worth about $100 million over the first five years.
The San Diego County agency has invested heavily to get more water in recent decades. In 2003, it struck an agriculture-to-urban transfer deal and it also buys water from the Carlsbad desalination plant under a 30-year agreement. These actions have brought San Diego County plentiful water — also some of the most expensive in the state. At the same time, conservation efforts in San Diego County have reduced water needs.
The San Diego County Water Authority delivers water to 22 cities and other agencies. Last year its board approved raising wholesale water rates 8.3%, which drew criticism from residents who said they were already struggling to afford their water bills.
Board Chair Nick Serrano said the deal “allows us to maximize the value of the investments San Diego County residents made over decades, strengthen water reliability, and do so in a way that is mindful of affordability.”
The two agencies said in a joint statement on Thursday that for Western Municipal, the additional water will help during drought and ensure reliable water without the cost and time involved in developing new water infrastructure projects.
The water will move from one area to the other through the pipelines of the Metropolitan Water District of Southern California, the regional wholesaler that imports water from the Colorado River and Northern California. Both San Diego County and Western Municipal are members of the MWD.
An agreement between the MWD and the San Diego County Water Authority last year ended a 15-year legal battle over water costs and cleared the way for San Diego County to start selling some of its excess water to areas that need it.
Business
Gasoline price gouging in California draws a warning
California’s petroleum market watchdog is warning about price gouging at some gas stations charging over $7 or even $8 a gallon as the Iran war sends oil prices soaring.
The average price of gas in California is currently $5.66, but as of Friday, a Chevron station in Essex is charging $9.69, another in Los Angeles’ Chinatown is charging $8.71, and one in Vidal Junction is charging $7.79, according to GasBuddy, which tracks prices across the country.
“Our team is vigilantly monitoring the retail, wholesale, and spot markets,” said Tai Milder, director of the California Energy Commission Division of Petroleum Market Oversight, in a statement. “Any reports of unfair practices or market manipulation will be taken seriously, and we will not hesitate to refer any illegal conduct for further investigation and prosecution.”
Gas prices have jumped some 30% nationally since the U.S. and Israel attacked Iran three weeks ago and Iran blocked 20% of the global oil supply. Californians, who already faced prices over $1 per gallon higher than the national average, are especially feeling the squeeze.
The extremely high prices at some gas stations in California “are not supported by current crude oil prices or gasoline futures,” the division said.
California’s oil and gas watchdog division was created in 2023 to provide greater insight into the state’s petroleum market after summer gas price spikes exceeded $6 per gallon two years in a row.
The state consistently sees the highest fuel prices in the country due to state taxes and fees, environmental programs, a cleaner fuel blend requirement and an isolated petroleum market, where 80% of gasoline comes from in-state refineries.
This isolation makes California gas prices more sensitive to refinery outages and market manipulation. In 2024 the division reported that, after accounting for environmental rules and taxes, Californians still pay an extra 41 cents more per gallon and the largest share of that goes to industry profit. They also found that the price spikes of the previous two years were caused by refineries going offline without backup supply and “potentially manipulative trading” in those under-supply conditions.
Lawmakers and regulators have been more quiet about price gouging of late and the energy commission put a decision to impose a profit cap on refiners on hold after a series of refinery closures raised concerns about future fuel supply shortages.
Jamie Court, the president of the nonprofit ratepayer advocacy group Consumer Watchdog, said the fact that the gap between national and California prices has widened since the start of the war is evidence of price gouging.
“We know they made 49 cents per gallon in January,” said Court, of the refineries. “We know now that their margins are closer to $1.25 per gallon,” he said, citing the group’s analysis of state and Oil Price Information Service data.
Chevron said in a statement that most of its gas stations are owned and operated by independent business people who are “free to set the retail price of fuel and other products.”
“Those costs are generally determined by fundamental economic forces like demand, supply and competition,” said spokesperson Ross Allen, who added that crude oil prices, which make up the bulk of gas prices, have gone up but California’s taxes and environmental fees can also add over $1.20 a gallon.
Valero, Marathon Petroleum, and Shell did not respond immediately to requests for comment.
The petroleum oversight agency said it reached out to stations where pricing appears “excessive and disproportionate to increases in those sellers’ costs” including “multiple stations in Los Angeles and San Bernardino counties, in addition to multiple stations in Northern California” since the war began.
It also encouraged Californians “to shop around and compare prices between name-brand and unbranded (or generic) gasoline.”
“While retailers typically charge more for branded gasoline, all gasoline sold in California must meet the state’s high standards for emissions control and engine performance,” read the statement.
Business
California attorney general asks judge to block Nexstar-Tegna merger
California Atty. Gen. Rob Bonta is asking a judge to unravel Nexstar Media Group’s $6.2-billion acquisition of rival TV station owner Tegna — the latest in a flurry of merger twists.
Nexstar announced late Thursday that it had consummated the Tegna takeover — despite a lawsuit that Bonta and seven other Democratic state attorneys general had filed in federal court the previous day.
The state officials sued to block the union of the station groups, alleging the new colossus would violate antitrust rules and a federal law limiting broadcast station ownership.
The lawsuit was filed in U.S. District Court in Sacramento.
Hours after that filing, the Federal Communications Commission’s Media Bureau in Washington approved Nexstar’s deal — clearing the way for the nation’s largest TV station group owner to swallow the third-largest station group.
The purchase gives Nexstar, which owns KTLA-TV Channel 5 in Los Angeles, 265 television stations.
On Friday, Bonta and the other attorneys general asked a judge for a temporary restraining order to freeze the takeover until a hearing on the matter.
“Nexstar/Tegna is not a done deal,” Bonta said Friday in a statement. “I will not let these corporate behemoths merge without a fight.”
It was not immediately clear when a judge might rule on the request for a restraining order.
Bonta appeared at a lawmakers’ hearing in Burbank on Friday to explore the impacts of another huge merger: Paramount Skydance’s proposed $111-billion takeover of Warner Bros. Discovery. Bonta’s office has opened an investigation into the Paramount-Warner merger, but Bonta said Friday that no decision has been made on whether he or other attorneys general will seek to block it.
For now, he is focused on derailing the Nexstar-Tegna deal.
“We filed a suit before that deal closed,” Bonta told The Times. “We think our case is extremely strong. There is no way this should be approved.”
At issue is whether the FCC had the power to grant a waiver that would allow Nexstar to control TV stations that reach nearly 80% of U.S. households. In 2003, Congress set the station ownership cap at 39% of the country.
The Department of Justice also gave its blessing to close the deal.
The three FCC commissioners did not vote on the matter — despite pleas from the lone Democrat on the panel who advocated for an open process.
Approval of the merger was rapid after President Trump endorsed the consolidation on Feb. 7.
“We need more competition against THE ENEMY, the Fake News National TV Networks,” Trump wrote in his social media post.
“Letting Good Deals get done like Nexstar – Tegna will help knock out the Fake News because there will be more competition, and at a higher and more sophisticated level,” Trump wrote. “GET THAT DEAL DONE!”
In a statement Thursday, Nexstar founder and chief executive Perry Sook thanked Trump and FCC Chairman Brendan Carr, saying Nexstar was “grateful” they recognized the “dynamic forces shaping the media landscape” and allowed the transaction to move forward.
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