Democratic California Rep. Ro Khanna found himself on the receiving end of a sharp rebuke from CNBC host Joe Kernen on Thursday after Khanna described Medicare and Social Security as “efficient” during a discussion on fraud, waste, and abuse in government programs.
The exchange took place shortly after President Donald Trump appointed Leland Dudek, the head of the Social Security Administration’s anti-fraud office, as the acting head of the agency on February 18.
This appointment came after Michelle King resigned from the position following a disagreement with employees from the Department of Government Efficiency (DOGE).
Kernen, who has consistently pointed out the need to tackle fraud and waste across government programs, had posted on X that cutting “fraud, waste, and abuse” should be a bipartisan issue.
really? fraud waste and abuse sets the standard for bipartisanship because it's rife in every program, by definition. Run by the federal government.
— Joe Kernen (@JoeSquawk) March 27, 2025
Khanna responded to Kernen’s remarks by defending Medicare and Social Security, calling the programs efficient.
“Oh, there’s certain things that are not inefficient. Medicare, Social Security,” Khanna said, prompting an incredulous response from Kernen.
“What? Medicare is not ine—come on. Are you out of your mind? Medicare?” Kernen fired back.
“And I’m not saying it’s Medicare’s fault, necessarily. There are in — look around and look at the way Medicare is gamed out by the people that benefit from it or Medicaid. I think Medicare Advantage might be one of the things that we’re talking about. Right, Ro?”
Kernen’s frustration stemmed from the well-documented instances of fraud within Medicare and Social Security.
Even Joe Biden said that about one-third of Medicare is a waste:
2010. VP Joe Biden: We waste a heck of a lot of money. One third of Medicare goes to nothing useful. We have to figure out how to stop it from bankrupting the country.
Welcome to DOGE. pic.twitter.com/VVhZo1LAi3 — MAZE (@mazemoore) March 17, 2025
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Over the years, multiple cases of fraud have been uncovered, including one major instance where two Puerto Rico-based health plans defrauded Medicare to the tune of over $1 billion between 2007 and 2010.
Last year, a hospital owned by a company connected to James Biden, the brother of Joe Biden, was investigated for a Medicare fraud and kickback scheme.
Additionally, audits have uncovered significant issues within the Social Security Administration (SSA). A July 2023 audit revealed that nearly 19 million individuals born before 1920 had no death information listed in the SSA database.
Another audit from August 2024 showed that the SSA had made at least $72 billion in improper payments.
The audit also revealed that improvements suggested by the office’s inspector general had not been implemented.
The Department of Government Efficiency (DOGE), under its efforts to root out waste and fraud in federal programs, has faced legal challenges.
A federal judge recently blocked the agency from reviewing Social Security data to uncover potential fraud. However, other courts have allowed DOGE to proceed with its efforts to reduce waste and inefficiencies.
Khanna’s defense of Medicare and Social Security in the face of ongoing fraud and inefficiencies raised concerns among critics who argue that these programs require significant reform to address the ongoing waste and fraud that taxpayers are funding.
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Kernen’s sharp exchange with Khanna highlighted the frustration many have with government programs that continue to be plagued by fraud despite attempts at oversight and reform.
The ongoing battle to eliminate fraud, waste, and abuse in federal programs is a key issue for many lawmakers, with both Republicans and Democrats recognizing the need for action, although disagreements persist over how best to tackle these problems.
As government efforts to address these issues continue, the debate over the efficiency of Medicare, Social Security, and other entitlement programs is likely to remain a focal point in future discussions on federal spending and reform.
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