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Health Secretary Defends Workforce Reduction Plan at HHS
Robert F. Kennedy Jr., the Secretary of Health and Human Services (HHS), recently undertook a series of media appearances to advocate for his controversial plan to reduce the department’s workforce by thousands of employees. This initiative follows an announcement last week detailing the elimination of 10,000 positions, compounding the estimated 10,000 roles already reduced through retirements and buyouts during the early stages of the current administration.
Kennedy Jr. Cites Department Size and Spending
In an interview with NewsNation, Mr. Kennedy characterized the Department of Health and Human Services as “the largest entity in government, twice the size of the Pentagon, with a budget of $1.9 trillion.” He further suggested that despite substantial financial and personnel resources, the department was not effectively improving the health of Americans.
Budget Experts Question Personnel Spending Claims
While it is true that HHS outlays exceed those of the Department of Defense, which has a discretionary budget of approximately $850 billion, budget specialists contend that the vast majority of HHS’s $1.8 trillion budget is allocated to areas other than staffing.
Personnel Costs Represent Small Budget Fraction
According to multiple budget authorities, personnel expenditures at federal health agencies constitute a minor portion of the overall budget—less than 1 percent. This encompasses the employees of key agencies such as the Food and Drug Administration (FDA), the Centers for Disease Control and Prevention (CDC), and the National Institutes of Health (NIH), among others.
The overwhelming share of HHS funds is directed towards programs like Medicare, providing healthcare for individuals over 65, and Medicaid, supporting healthcare for low-income populations. These funds are distributed to a wide range of entities, including hospitals, clinics, nursing facilities, dialysis centers, pharmaceutical corporations, medical device manufacturers, and private Medicare Advantage insurance plans.
Expert Analysis Contradicts Secretary’s Justification
Melinda Buntin, a professor of health policy and economics at Johns Hopkins University, stated that the $17.6 billion allocated to HHS employee costs represents less than 1 percent of the department’s total budget and has increased proportionally with overall spending.
“I believe most individuals would be surprised to learn what a small percentage of Health and Human Services spending is dedicated to personnel, including both salaries, compensation, and benefits,” she commented, emphasizing that this is logical given the agency’s focus on direct healthcare provision.
Bobby Kogan, senior director of federal budget policy at the Center for American Progress, a left-leaning think tank, described Mr. Kennedy’s characterization as “highly misleading.”
Workforce Reductions Aim for Cost Savings
Mr. Kogan elaborated, stating that the Secretary’s framing would generate a “fundamentally incorrect understanding of the actual situation.” He asserted, “The primary factor influencing HHS’s operations is the significant increase in the elderly demographic.”
An HHS spokesperson indicated that the planned workforce reductions are intended to achieve annual federal spending cuts of $1.8 billion, asserting that this sum is substantial.
Broader HHS Spending on Public Services
The Administration for Children and Families (ACF), another agency within HHS, also allocates billions to public services, including Head Start programs, foster care, Temporary Assistance for Needy Families (TANF), and residential facilities for unaccompanied minors from other nations.
Staffing Costs Confirmed to be Minor
Chris Towner, policy director for the Committee for a Responsible Federal Budget, conducted an independent analysis, also concluding that HHS personnel costs appear to be under 1 percent of the department’s expenditures. He suggested the figure could be marginally higher, considering the number of health agency employees with advanced degrees.
Focus on Government Fraud and Medicare Advantage Plans
The current administration has consistently highlighted government fraud, albeit not the traditional types targeted by Congress. Lawmakers have frequently proposed curbing Medicare Advantage insurance plans, which are estimated to overcharge Medicare by tens of billions of dollars annually.