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Cigna, Allegheny Health Network contract dispute threatens in-network access for thousands
Cigna, Allegheny Health Network contract dispute threatens in-network access for thousands

Yahoo

time4 days ago

  • Business
  • Yahoo

Cigna, Allegheny Health Network contract dispute threatens in-network access for thousands

Thousands of Cigna commercially insured people in the Pittsburgh region could lose in-network access to Allegheny Health Network by the end of June in a dispute over a new contract. AHN patients who use Cigna were notified this week of the impasse in negotiations on a new contract, meaning most care would be out of network if there isn't a new contract in place by June 30, according to a copy of a letter obtained by the Pittsburgh Business Times. About 20,000 Cigna members have used an AHN provider within the past year. It's the second such dispute in the past two years. The contract that runs out is for commercially insured members and not for Medicare or Medicare Advantage members. Cigna in March 2025 sold the Medicare-related business to Health Care Service Corp., a Chicago-based insurer. HCSC's coverage of Medicare and Medicare Advantage patients isn't impacted by this dispute and those patients will continue to have in-network access to AHN no matter what happens to the commercial insurance agreement. Click here to read more from our partners at the Pittsburgh Business Times. Download the FREE WPXI News app for breaking news alerts. Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW

Cigna Profits Hit $1.3 Billion As Health Insurer Gets Handle On Costs
Cigna Profits Hit $1.3 Billion As Health Insurer Gets Handle On Costs

Forbes

time02-05-2025

  • Business
  • Forbes

Cigna Profits Hit $1.3 Billion As Health Insurer Gets Handle On Costs

The Cigna Group swung to a first quarter profit of $1.3 billion as the health insurer begins to gain control of rising medical costs and its Evernorth business continues to perform well. Cigna, which includes Evernorth Health Services and one of the nation's largest pharmacy benefit management companies, said first quarter net income was $1.3 billion, or $4.85 per share, compared with a net loss of $277 million, or 97 cents per share, in the first quarter of last year. Total revenues for the first quarter jumped 14% to $65.5 billion 'reflecting growth of existing client relationships and strong specialty pharmacy growth in Evernorth Health Services,' Cigna said in its first quarter earnings report released Friday. The potential for future growth and a health insurance business with potentially lower costs thanks to a divestiture of Medicare-related businesses figured in Cigna's newly disclosed financial outlook released Friday showing more promising earnings for the rest of 2025. Like other health insurers, Cigna has been grappling with rising medical costs and the first quarter was no different. Cigna's medical cost ratio (MCR), which is the percentage of premium revenue that goes toward medical costs, was 82.2% for the first quarter of 2025 compared to 79.9% for first quarter of last year. 'The increase for the first quarter was primarily driven by expected higher stop loss medical costs,' Cigna said in its report. Meanwhile, Cigna said its sale of its Medicare health benefits businesses to Health Care Service Corp. in late March 'closed later than the company's financial planning assumptions, increasing the first quarter Cigna Healthcare MCR as the Medicare businesses operate at a higher MCR compared to the rest of the portfolio.' Looking ahead, however, Medicare costs won't be an issue for Cigna like its rivals that operate Medicare Advantage plans for seniors. Operators of Medicare Advantage have been hit hard in the last year with higher costs that have spilled over on to their stock prices. Medicare Advantage plans contract with the federal government to provide extra benefits and services to seniors, such as disease management and nurse help hotlines with some also offering vision, dental care and wellness programs. During the first quarter, Cigna closed the sale of its Medicare health benefits businesses and a medical care provider services operation for $3.3 billion to Health Care Service Corp., the parent of five Blue Cross and Blue Shield health insurance plans. Health Care Service, which operates Blue Cross and Blue Shield health plans in five states, now owns Cigna's Medicare Advantage plans, Cigna supplemental benefits, Medicare Part D drug benefits and CareAllies, a business that helps medical care providers with various administrative services and contracting. Cigna's focus is now on its businesses that include commercial health plans, administration of health benefits for employers and its Evernorth health services business that includes the large pharmacy benefit manager, Express Scripts. 'We are building a more sustainable health care model by successfully delivering on our series of commitments and actions to improve transparency and support for our customers and patients,' said Cigna chairman and chief executive officer David M. Cordani. 'Our strong first quarter results and increase in outlook for full-year earnings reflects the strength of our Evernorth Health Services and Cigna Healthcare growth platforms in a dynamic environment.' Cigna said its outlook for full year 2025 consolidated adjusted income from operations is $29.60 per share.

Federal Government Layoff Tracker: EPA Reportedly Firing DEI Workers
Federal Government Layoff Tracker: EPA Reportedly Firing DEI Workers

Forbes

time22-04-2025

  • Politics
  • Forbes

Federal Government Layoff Tracker: EPA Reportedly Firing DEI Workers

The Environmental Protection Agency reportedly told nearly 300 employees this week they would be fired or reassigned as part of President Donald Trump's efforts to cut diversity, equity and inclusion initiatives in the federal government. President Donald Trump waves before departing on Marine One from the South Lawn of the White House ... More on March 7. Environmental Protection Agency: The EPA notified about 280 employees working on environmental justice and diversity, equity and inclusion initiatives they would be fired or reassigned, The Washington Post reported, part of an effort to close the EPA's Office of Environmental Justice and External Civil Rights, which had placed 171 of its employees on administrative leave then reinstated dozens working in regional offices less than a month later, according to a previous Washington Post report. Health and Human Services: The cuts Kennedy is expected to announce would shrink about a quarter of the department's workforce, according to the Journal, which reported internal documents show plans to close five regional offices, cut about 15% of FDA employees, 18% of employees at the Centers for Disease Control and Prevention, 6% of National Institutes of Health workers and 4% of employees at the Centers for Medicare and Medicaid Services as part of a department-wide reorganization that includes consolidation of some divisions and the creation of a new Administration for a Health America and Assistant Secretary of Enforcement to investigate Medicare-related disputes. Department of Defense: The Pentagon aims to cut about 6,000 employees each month by not filling vacated positions, according to the Associated Press, citing an unnamed defense official, after the agency said in February it began laying off approximately 5,400 probationary workers, or 5% to 8% of its civilian staff, to comply with the Department of Government Efficiency's workforce reduction plan. The fired probationary workers must be reinstated, according to a March 13 order from U.S. District Judge William Alsup that was upheld by a federal appeals court on March 18. Department of Education: The agency announced on March 11 it would begin the process for laying off half of its workers, about 2,000 employees, and told staff its Washington, D.C., and regional offices would be closed Wednesday, as the Trump administration has expressed plans to shut down the agency, alleging its a symbol of bureaucratic bloat (the agency has already reportedly laid off dozens of probationary employees). National Oceanic and Atmospheric Administration: The agency is preparing to lay off more than 1,000 employees in a second round of layoffs that is expected to impact about 10% of its workforce, multiple outlets reported in mid-March, prompting fears it would affect the agency's weather forecasting work ahead of hurricane season and other potential natural disasters. Central Intelligence Agency: The agency has started to fire some probationary employees, multiple outlets reported, after firing some diversity staffers in February who had been placed on leave as part of the Trump administration's push to eliminate diversity, equity and inclusion initiatives across the federal government—it's unclear what prompted the latest round of firings, but a federal judge ruled in February that CIA Director John Ratcliffe had the authority to fire officers at will. Department of Veterans Affairs: The VA plans to cut more than 80,000 workers beginning in June in an attempt to return to 2019 staffing levels, its chief of staff, Christopher Syrek, reportedly said in an internal memo viewed by Reuters. The agency announced about 2,400 probationary employees were dismissed in mid-February in two waves, though Alsup ordered them to be reinstated in his March 13 ruling. Internal Revenue Service: The IRS was preparing to reduce its nearly 100,000-person workforce by about 50% through layoffs and buyouts, multiple outlets reported in early March, with a reduction of 20% of staff by May 15, CNN reported March 13—after the Trump administration already laid off about 7,000 IRS workers and reportedly set out to close more than 110 offices in February, at the peak of tax season. USAID: Thousands of employees were reportedly given 15-minute windows on Feb. 27 and 28 to clear their office spaces as the Trump administration has sought to dismantle the agency, firing or placing on leave 5,600 workers, while Secretary of State Marco Rubio said on March 10 that 83% of USAID programs had been shut down—though a federal judge on March 18 ordered the Trump administration to restore the agency's functionality, ruling that shutting it down 'likely violated the United States Constitution in multiple ways.' Social Security Administration: The agency plans to cut its staff by about 7,000 employees, or 12%, according to multiple reports, while an unnamed source told the Associated Press the staffing cuts could amount to as much as 50% of its workforce, though the agency has rejected the report as 'false' and a 'rumor.' Labor Department: The agency plans to reduce staff in an office that handles equal employment opportunity laws by 90%, The Washington Post reported, though it's unclear how many employees will be affected. National Highway Traffic Safety Administration: The agency—which has open safety investigations into Elon Musk's Tesla company—laid off 4% of its staff, a spokesman said in a statement that said the agency grew by 30% during President Joe Biden's administration, noting it 'retained positions critical to the mission of saving lives, preventing injuries, and reducing economic costs due to road traffic crashes.' Federal Emergency Management Agency: The Trump administration has directed senior officials in the FEMA resilience office, which helps communities prepare for potential disasters and mitigate risk, to identify employees who work or worked on 'climate, environmental justice, equity and DEIA' initiatives for potential firings, CNN reported, citing an email sent to the resilience office officials that said the directive could 'impact the majority' of staff, as Trump has suggested previously he wants to eliminate FEMA entirely and DOGE is conducting a review of FEMA operations. TSA: More than 240 employees were fired in February 'due to performance and conduct issues during their probationary period,' TSA spokesperson Robert Langston told Bloomberg—the outlet added it's not unusual for probationary TSA workers to be terminated due to performance, and the Office of Personnel Management notes it's 'less cumbersome' to fire federal staff during the probationary period soon after they're hired. Office of Community Planning and Development: The Trump administration is aiming to cut the office, an arm of the department of Housing and Urban Development, from 936 staffers to 150, or 84%, the New York Times reported Feb. 20, citing a document it obtained detailing the plans. Health agencies: Some 5,200 probationary employees across the National Institutes of Health and the Centers for Disease Control and Prevention are being targeted for layoffs, according to multiple outlets, with Bloomberg reporting that employees at the Centers for Medicare and Medicaid Services and the Food and Drug Administration were also laid off. Department of Energy: As many as 2,000 probationary employees at the agency have been fired, according to Politico, citing anonymous sources—though Bloomberg reports some department staff who work on nuclear security were asked back, and the March 13 order from a federal judge requires the remainder to be reinstated. U.S. Forest Service: More than 3,400 employees have been fired, two people familiar with the firings told Politico. Small Business Administration: Some probationary employees at the agency received emails notifying them of their terminations, before another email said the initial notices were a mistake, only to be notified in a third email days later confirming their firings, Bloomberg reported in February, before Alsup in March ordered them to be reinstated. Office of Personnel Management: Probationary employees at the office who did not take the Trump administration's buyout offer were let go in early February, a union official with the American Federation of Government Employees told NPR. Consumer Financial Protection Bureau: The union that represents workers at the financial agency said about 73 of its members had been terminated, after the agency—which has drawn ire from Trump's tech allies—was ordered to stop all work, though union leaders and the Trump administration reached a deal in mid-February to prevent more agency employees from being terminated while litigation challenging the dismantling of the agency is pending. National Nuclear Safety Administration: An employee at the agency—which oversees nuclear weapons in the U.S.—told NPR the agency would fire about 300 of the agency's 1,800 staff, though the Trump administration is now reportedly trying to rehire some of those employees. General Services Administration: More than 100 people were affected by layoffs at the agency responsible for the federal government's real estate portfolio, three people familiar with the matter told Reuters. Federal Aviation Administration: About 400 FAA were terminated in mid-February—just weeks after the fatal collision over the Potomac River that killed 67 people—with the layoffs including some in safety-specific roles, the Associated Press reported, though the Department of Transportation said roles that 'are critical to safety' were spared and the layoffs targeted probationary employees. Get Forbes Breaking News Text Alerts: We're launching text message alerts so you'll always know the biggest stories shaping the day's headlines. Text 'Alerts' to (201) 335-0739 or sign up here. The Trump administration ordered agency leaders in a Feb. 26 memo to submit plans for reducing their workforces by March 13, indicating the most sweeping layoffs are forthcoming. The significant staff cuts across the federal government have been largely attributed to the Musk-led Department of Government Efficiency, as part of its broader mission to root out purported government waste. In a Cabinet meeting March 6, Trump reportedly told agency heads they ultimately have authority over firings, rather than Musk—a move that could help the Trump administration fight lawsuits over DOGE's authority. Trump suggested following the meeting that Musk would still have some control, however, telling reporters that if agency heads 'can cut, it's better, and if they don't cut, then Elon will do the cutting.' In court, the Trump administration has sought to distance Musk from the terminations, describing his role as 'advisory.' It's not immediately clear how many staff have been affected by widespread layoffs across the Trump administration, which are separate from voluntary buyout deals offered to more than 2 million federal workers. Trump's administration has reportedly made a number of other high-profile terminations: At least 17 inspectors general, the chief financial officer at the Federal Emergency Management Agency plus three other FEMA workers, U.S. Coast Guard Commandant Linda Fagan, more than a dozen prosecutors who worked on cases against Trump, multiple senior FBI officials, the director of the Office of Government Ethics, and several high-ranking military officials, including Air Force Gen. Charles Q. Brown. Mostly new employees who have been in the federal workforce for less than a year and are not afforded some job protections, including a right to appeal terminations. Probationary employees are the target of the Trump administration's layoffs, according to multiple reports. More than 200,000 federal workers are probationary employees. The Trump administration separately offered all federal civilian workers pay with benefits through September if they choose to voluntarily resign, an offer 75,000 federal workers reportedly accepted. The administration has suggested employees who don't participate in the program could be subject to the mass terminations. At least for many probationary employees, probably not, according to Alsup, who ordered the Trump administration in March to rescind firing directives at the heart of the probationary government employee layoffs for six government agencies. Meanwhile, the Trump administration is facing multiple lawsuits over some of the more high-profile firings. An appeals court ruled in March Trump had the authority to remove head of the Office of Special Counsel, Hampton Dellinger, while his case plays out in court, though Dellinger dropped his lawsuit after the ruling. Several labor unions have also sued the Trump administration over the mass firings, and eight inspectors general argued in a lawsuit filed in mid-February their terminations violated federal rules that require the executive branch to give Congress 30 days notice before firing them, plus a justification for the terminations. The administration is also facing lawsuits from former National Labor Relations Board Chair Gwynne Wilcox, who was fired by Trump on Jan. 27 and former Merit Systems Protection Board member Cathy Harris, who was fired Feb. 10—both were reinstated via court order. Federal regulations of mass layoffs, known as 'reduction in force,' require the government to give 60 days advance notice of a layoff. The job must also be eliminated entirely—not an attempt to replace a worker, according to the Wall Street Journal. Employees who believe the administration broke protocol in terminating them can file complaints with the Merit Systems Protection Board. There are also protections in place for independent boards and commissions, such as the NLRB. Presidents can only fire members of the board for 'malfeasance' or 'neglect of duty,' according to the Wall Street Journal. Trump is aiming for budget cuts between 30% and 40%, on average, across all government agencies, with staffing reductions serving as a major area for spending rollbacks, the Washington Post reported in mid-February, citing two anonymous sources. Many of the spending cuts are led by billionaire Elon Musk and his Department of Government Efficiency. Trump signed an executive order to reinstate a policy from his first term that reclassified tens of thousands of federal civilian employees to at-will employees, making it easier for him to fire them by ridding them of their job protections. Several unions, including the American Federation of Government Employees, the American Federation of State, County and Municipal Employees and the National Treasury Employees Union have filed lawsuits to block Schedule F from taking effect. Schedule F is unrelated to the mass layoffs of probationary employees, but is widely viewed as another tool Trump can use to exert outsized power over the makeup of the federal workforce. Some Republicans have spoken out about the widespread job cuts, with Musk's controversial email to federal employees asking them to detail five accomplishments sparking a new round of criticism. Multiple Republicans called for Musk to exercise more 'compassion' in his effort to reduce the federal workforce in the wake of the email. Sen. Lisa Murkowski, R-Alaska, gave some of the sharpest criticism of her Republican colleagues, calling the email 'absurd' and likening the directive to 'intimidation,' while others have expressed concerns that Congress doesn't have enough information about DOGE's activities. Musk met with Republicans in March and reportedly attempted to downplay his role in the terminations, insisting they were at the discretion of agency leaders, CNN reported. The White House has also said repeatedly Musk is not in charge of DOGE and is instead a 'special government employee' who is not paid and acts in an advisory capacity. UPDATE (March 6, 2025): This story's TSA section has been updated to include details from the Office of Personnel Management on probationary workers. Correction: This article has been updated to reflect the Labor Department's reported layoff plans. Here Are All The Major Lawsuits Against Trump And Musk: 8 Inspectors General Challenge Their Firing In Court (Forbes) Trump's Federal Worker Buyout Pause Lifted: Here's What To Know As 75,000 Workers Accept Offer (Forbes) Trump Vs. CFPB: Russ Vought Orders Consumer Financial Protection Bureau To Stop Work (Forbes)

RFK Jr. May Cut 10,000 Health Jobs
RFK Jr. May Cut 10,000 Health Jobs

Forbes

time27-03-2025

  • Health
  • Forbes

RFK Jr. May Cut 10,000 Health Jobs

Health and Human Services Secretary Robert F. Kennedy Jr. is expected to announce 10,000 employees will be cut, the Wall Street Journal reported Thursday—the latest round of layoffs in the Trump administration's push to slash the size of the federal workforce. Health and Human Services: The cuts Kennedy is expected to announce would shrink about a quarter of the department's workforce, according to the Journal, which reported internal documents show plans to close five regional offices, cut about 15% of FDA employees, 18% of employees at the Centers for Disease Control and Prevention, 6% of National Institutes of Health workers and 4% of employees at the Centers for Medicare and Medicaid Services as part of a department-wide reorganization that includes consolidation of some divisions and the creation of a new Administration for a Health America and Assistant Secretary of Enforcement to investigate Medicare-related disputes. Department of Defense: The Pentagon aims to cut about 6,000 employees each month by not filling vacated positions, according to the Associated Press, citing an unnamed defense official, after the agency said in February it began laying off approximately 5,400 probationary workers, or 5% to 8% of its civilian staff, to comply with the Department of Government Efficiency's workforce reduction plan. The fired probationary workers must be reinstated, according to a March 13 order from U.S. District Judge William Alsup that was upheld by a federal appeals court on March 18. Department of Education: The agency announced on March 11 it would begin the process for laying off half of its workers, about 2,000 employees, and told staff its Washington, D.C., and regional offices would be closed Wednesday, as the Trump administration has expressed plans to shut down the agency, alleging its a symbol of bureaucratic bloat (the agency has already reportedly laid off dozens of probationary employees). National Oceanic and Atmospheric Administration: The agency is preparing to lay off more than 1,000 employees in a second round of layoffs that is expected to impact about 10% of its workforce, multiple outlets reported in mid-March, prompting fears it would affect the agency's weather forecasting work ahead of hurricane season and other potential natural disasters. Central Intelligence Agency: The agency has started to fire some probationary employees, multiple outlets reported, after firing some diversity staffers in February who had been placed on leave as part of the Trump administration's push to eliminate diversity, equity and inclusion initiatives across the federal government—it's unclear what prompted the latest round of firings, but a federal judge ruled in February that CIA Director John Ratcliffe had the authority to fire officers at will. Department of Veterans Affairs: The VA plans to cut more than 80,000 workers beginning in June in an attempt to return to 2019 staffing levels, its chief of staff, Christopher Syrek, reportedly said in an internal memo viewed by Reuters. The agency announced about 2,400 probationary employees were dismissed in mid-February in two waves, though Alsup ordered them to be reinstated in his March 13 ruling. Internal Revenue Service: The IRS was preparing to reduce its nearly 100,000-person workforce by about 50% through layoffs and buyouts, multiple outlets reported in early March, with a reduction of 20% of staff by May 15, CNN reported March 13—after the Trump administration already laid off about 7,000 IRS workers and reportedly set out to close more than 110 offices in February, at the peak of tax season. USAID: Thousands of employees were reportedly given 15-minute windows on Feb. 27 and 28 to clear their office spaces as the Trump administration has sought to dismantle the agency, firing or placing on leave 5,600 workers, while Secretary of State Marco Rubio said on March 10 that 83% of USAID programs had been shut down—though a federal judge on March 18 ordered the Trump administration to restore the agency's functionality, ruling that shutting it down 'likely violated the United States Constitution in multiple ways.' Social Security Administration: The agency plans to cut its staff by about 7,000 employees, or 12%, according to multiple reports, while an unnamed source told the Associated Press the staffing cuts could amount to as much as 50% of its workforce, though the agency has rejected the report as 'false' and a 'rumor.' Labor Department: The agency plans to reduce staff in an office that handles equal employment opportunity laws by 90%, The Washington Post reported, though it's unclear how many employees will be affected. Environmental Protection Agency: Trump told reporters during his first Cabinet meeting that EPA Administrator Lee Zeldin has expressed a desire to cut 65% of the EPA's 18,000-some employees, as the Trump administration seeks to roll back Biden-era environmental protections—but the White House later said the comments were instead referring to a 65% cut in spending. National Highway Traffic Safety Administration: The agency—which has open safety investigations into Elon Musk's Tesla company—laid off 4% of its staff, a spokesman said in a statement that said the agency grew by 30% during President Joe Biden's administration, noting it 'retained positions critical to the mission of saving lives, preventing injuries, and reducing economic costs due to road traffic crashes.' Federal Emergency Management Agency: The Trump administration has directed senior officials in the FEMA resilience office, which helps communities prepare for potential disasters and mitigate risk, to identify employees who work or worked on 'climate, environmental justice, equity and DEIA' initiatives for potential firings, CNN reported, citing an email sent to the resilience office officials that said the directive could 'impact the majority' of staff, as Trump has suggested previously he wants to eliminate FEMA entirely and DOGE is conducting a review of FEMA operations. TSA: More than 240 employees were fired in February 'due to performance and conduct issues during their probationary period,' TSA spokesperson Robert Langston told Bloomberg—the outlet added it's not unusual for probationary TSA workers to be terminated due to performance, and the Office of Personnel Management notes it's 'less cumbersome' to fire federal staff during the probationary period soon after they're hired. Office of Community Planning and Development: The Trump administration is aiming to cut the office, an arm of the department of Housing and Urban Development, from 936 staffers to 150, or 84%, the New York Times reported Feb. 20, citing a document it obtained detailing the plans. Health agencies: Some 5,200 probationary employees across the National Institutes of Health and the Centers for Disease Control and Prevention are being targeted for layoffs, according to multiple outlets, with Bloomberg reporting that employees at the Centers for Medicare and Medicaid Services and the Food and Drug Administration were also laid off. Department of Energy: As many as 2,000 probationary employees at the agency have been fired, according to Politico, citing anonymous sources—though Bloomberg reports some department staff who work on nuclear security were asked back, and the March 13 order from a federal judge requires the remainder to be reinstated. U.S. Forest Service: More than 3,400 employees have been fired, two people familiar with the firings told Politico. Small Business Administration: Some probationary employees at the agency received emails notifying them of their terminations, before another email said the initial notices were a mistake, only to be notified in a third email days later confirming their firings, Bloomberg reported in February, before Alsup in March ordered them to be reinstated. Office of Personnel Management: Probationary employees at the office who did not take the Trump administration's buyout offer were let go in early February, a union official with the American Federation of Government Employees told NPR. Consumer Financial Protection Bureau: The union that represents workers at the financial agency said about 73 of its members had been terminated, after the agency—which has drawn ire from Trump's tech allies—was ordered to stop all work, though union leaders and the Trump administration reached a deal in mid-February to prevent more agency employees from being terminated while litigation challenging the dismantling of the agency is pending. National Nuclear Safety Administration: An employee at the agency—which oversees nuclear weapons in the U.S.—told NPR the agency would fire about 300 of the agency's 1,800 staff, though the Trump administration is now reportedly trying to rehire some of those employees. General Services Administration: More than 100 people were affected by layoffs at the agency responsible for the federal government's real estate portfolio, three people familiar with the matter told Reuters. Federal Aviation Administration: About 400 FAA were terminated in mid-February—just weeks after the fatal collision over the Potomac River that killed 67 people—with the layoffs including some in safety-specific roles, the Associated Press reported, though the Department of Transportation said roles that 'are critical to safety' were spared and the layoffs targeted probationary employees. Get Forbes Breaking News Text Alerts: We're launching text message alerts so you'll always know the biggest stories shaping the day's headlines. Text 'Alerts' to (201) 335-0739 or sign up here. The Trump administration ordered agency leaders in a Feb. 26 memo to submit plans for reducing their workforces by March 13, indicating the most sweeping layoffs are forthcoming. The significant staff cuts across the federal government have been largely attributed to the Musk-led Department of Government Efficiency, as part of its broader mission to root out purported government waste. In a Cabinet meeting March 6, Trump reportedly told agency heads they ultimately have authority over firings, rather than Musk—a move that could help the Trump administration fight lawsuits over DOGE's authority. Trump suggested following the meeting that Musk would still have some control, however, telling reporters that if agency heads 'can cut, it's better, and if they don't cut, then Elon will do the cutting.' In court, the Trump administration has sought to distance Musk from the terminations, describing his role as 'advisory.' It's not immediately clear how many staff have been affected by widespread layoffs across the Trump administration, which are separate from voluntary buyout deals offered to more than 2 million federal workers. Trump's administration has reportedly made a number of other high-profile terminations: At least 17 inspectors general, the chief financial officer at the Federal Emergency Management Agency plus three other FEMA workers, U.S. Coast Guard Commandant Linda Fagan, more than a dozen prosecutors who worked on cases against Trump, multiple senior FBI officials, the director of the Office of Government Ethics, and several high-ranking military officials, including Air Force Gen. Charles Q. Brown. Mostly new employees who have been in the federal workforce for less than a year and are not afforded some job protections, including a right to appeal terminations. Probationary employees are the target of the Trump administration's layoffs, according to multiple reports. More than 200,000 federal workers are probationary employees. The Trump administration separately offered all federal civilian workers pay with benefits through September if they choose to voluntarily resign, an offer 75,000 federal workers reportedly accepted. The administration has suggested employees who don't participate in the program could be subject to the mass terminations. At least for many probationary employees, probably not, according to Alsup, who ordered the Trump administration in March to rescind firing directives at the heart of the probationary government employee layoffs for six government agencies. Meanwhile, the Trump administration is facing multiple lawsuits over some of the more high-profile firings. An appeals court ruled in March Trump had the authority to remove head of the Office of Special Counsel, Hampton Dellinger, while his case plays out in court, though Dellinger dropped his lawsuit after the ruling. Several labor unions have also sued the Trump administration over the mass firings, and eight inspectors general argued in a lawsuit filed in mid-February their terminations violated federal rules that require the executive branch to give Congress 30 days notice before firing them, plus a justification for the terminations. The administration is also facing lawsuits from former National Labor Relations Board Chair Gwynne Wilcox, who was fired by Trump on Jan. 27 and former Merit Systems Protection Board member Cathy Harris, who was fired Feb. 10—both were reinstated via court order. Federal regulations of mass layoffs, known as 'reduction in force,' require the government to give 60 days advance notice of a layoff. The job must also be eliminated entirely—not an attempt to replace a worker, according to the Wall Street Journal. Employees who believe the administration broke protocol in terminating them can file complaints with the Merit Systems Protection Board. There are also protections in place for independent boards and commissions, such as the NLRB. Presidents can only fire members of the board for 'malfeasance' or 'neglect of duty,' according to the Wall Street Journal. Trump is aiming for budget cuts between 30% and 40%, on average, across all government agencies, with staffing reductions serving as a major area for spending rollbacks, the Washington Post reported in mid-February, citing two anonymous sources. Many of the spending cuts are led by billionaire Elon Musk and his Department of Government Efficiency. Trump signed an executive order to reinstate a policy from his first term that reclassified tens of thousands of federal civilian employees to at-will employees, making it easier for him to fire them by ridding them of their job protections. Several unions, including the American Federation of Government Employees, the American Federation of State, County and Municipal Employees and the National Treasury Employees Union have filed lawsuits to block Schedule F from taking effect. Schedule F is unrelated to the mass layoffs of probationary employees, but is widely viewed as another tool Trump can use to exert outsized power over the makeup of the federal workforce. Some Republicans have spoken out about the widespread job cuts, with Musk's controversial email to federal employees asking them to detail five accomplishments sparking a new round of criticism. Multiple Republicans called for Musk to exercise more 'compassion' in his effort to reduce the federal workforce in the wake of the email. Sen. Lisa Murkowski, R-Alaska, gave some of the sharpest criticism of her Republican colleagues, calling the email 'absurd' and likening the directive to 'intimidation,' while others have expressed concerns that Congress doesn't have enough information about DOGE's activities. Musk met with Republicans in March and reportedly attempted to downplay his role in the terminations, insisting they were at the discretion of agency leaders, CNN reported. The White House has also said repeatedly Musk is not in charge of DOGE and is instead a 'special government employee' who is not paid and acts in an advisory capacity. UPDATE (March 6, 2025): This story's TSA section has been updated to include details from the Office of Personnel Management on probationary workers. Correction: This article has been updated to reflect the Labor Department's reported layoff plans. Here Are All The Major Lawsuits Against Trump And Musk: 8 Inspectors General Challenge Their Firing In Court (Forbes) Trump's Federal Worker Buyout Pause Lifted: Here's What To Know As 75,000 Workers Accept Offer (Forbes) Trump Vs. CFPB: Russ Vought Orders Consumer Financial Protection Bureau To Stop Work (Forbes) One Community. Many Voices. Create a free account to share your thoughts. Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space. In order to do so, please follow the posting rules in our site's Terms of Service. We've summarized some of those key rules below. Simply put, keep it civil. Your post will be rejected if we notice that it seems to contain: User accounts will be blocked if we notice or believe that users are engaged in: So, how can you be a power user? Thanks for reading our community guidelines. 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Elon Musk's 'Proof' of Government Waste Is in the Pudding
Elon Musk's 'Proof' of Government Waste Is in the Pudding

Yahoo

time13-02-2025

  • Business
  • Yahoo

Elon Musk's 'Proof' of Government Waste Is in the Pudding

Earlier this week, Elon Musk appeared at the Oval Office with President Donald Trump; Musk's son, X Æ A-Xii, even made an appearance. Citing a desire for "maximum transparency," the tech billionaire discussed the efforts of his Department of Government Efficiency (DOGE) to identify and eliminate waste, fraud, and abuse within the federal government. Here was how The New York Times described the press conference: "In Oval Office, Musk Says Without Proof That Bureaucracy Is Rife With Fraud." Later, the newspaper tweaked the headline to read: "At Oval Office, Musk Makes Broad Claims of Federal Fraud Without Proof." To be maximally charitable to the Times, they did not actually state that claims of federal fraud are baseless, just that Musk failed to proffer examples. Musk did cite examples of government processes clearly in need of updating, including the infamous, inefficient limestone mine where government employee papers are kept—something that sounds completely ridiculous but actually exists. Even so, the Times is clearly treating the claim that the bureaucracy is rife with fraud as extraordinary. And extraordinary claims do require evidence to back them up. It's not an extraordinary claim, however. It is already well established and documented. While the beneficiaries of the fraud are not typically the bureaucrats themselves—though this does happen—the opaque, inefficient, and duplicative processes of our massive federal government allow scammers to misappropriate public funds. The government itself is aware that fraud exists at a massive scale. The Government Accountability Office (GAO) estimates that the federal government loses hundreds of billions of dollars each year due to fraud. Medicare-related fraud has permitted health care insurers to pocket $50 billion in reimbursements for diseases that doctors never treated. Fraudsters collected an estimated $135 billion in fraudulent COVID-19 unemployment payments, and unless Congress acts to extend the statute of limitations, this money will never be recouped by the government. National security funds are routinely misspent or disappeared. The Pentagon has failed seven audits in a row and often can't account for missing money; last year, the Defense Department admitted that it lost $8.2 billion in Ukraine. The federal government spent $61 billion rebuilding Iraq: 15 percent of the funds were misspent, and another 10 percent simply disappeared, according to government auditors. In Afghanistan, it's much the same: The Taliban-controlled central bank is a recipient of U.S. funds. To the mainstream media's credit, many of these frauds have been expertly and exhaustively covered by journalistic institutions. The Wall Street Journal, ProPublica, and yes, The New York Times, have done terrific work exposing financial impropriety within the federal government. That's why it's odd to see the Times glaring suspiciously at Musk, as if this is the claim that makes him some kind of wide-eyed conspiracy theorist. The fraud is real, and they know it! I am joined by Amber Duke to discuss CNN's "constitutional crisis," Joy Reid's war on Musk, the gerontocracy, and Joe Rogan's latest advice for Democrats. I am finally catching up on the final season of HBO's Search Party, which was released back in 2022. It's a black comedy satire of millennial eccentricities, starring Alia Shawkat of Arrested Development. The first season premiered in 2016, and I started watching it after briefly meeting Shawkat at a White House Correspondents' Dinner party. Shawkat portrays Dory Sief, who is investigating the disappearance of a college acquaintance. The initial premise is something along the lines of a whodunit, but later seasons involve much more outlandish plot lines: a murder trial, a kidnapping, and, finally, zombies. I have two more episodes to go, so I won't render a verdict yet. The post Elon Musk's 'Proof' of Government Waste Is in the Pudding appeared first on

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