Seema Verma misused $6 million in U.S. funds, say Democrats

In a report released today, Seema Verma is accused of “extensive abuse” of nearly $6 million in taxpayer funds to boost her public image. The report, by Democratic leaders of the U.S. Congress, states that taxpayer funds were misused to pay consultants over $13,000 to promote Verma to win Washingtonian magazine’s "Most Powerful Women in Washington" and to appear on high-profile panels.

Other payments incurred by Verma, 49, and paid by the U.S. government, include about $14,000 for a two-minute video, $450 for a makeup artist, over $3,400 to coordinate her appearance on Politico’s "Women Rule" podcast and nearly $3,000 to a consultant who organized a “Girl’s Night” in Verma’s honor at a journalist’s home. In addition, consultants were paid up to $380 an hour to write Verma’s speeches and Twitter posts and to connect her with fellow Republicans in Congress; and $203 an hour to drive her to events.

"This is just another reckless, politically timed, drive-by hit job on a reform-driven Trump Administration official and, by extension, on President Trump himself," Michael Caputo the top spokesperson for the Health & Human Services (HHS) department said, defending Verma.  

Since 2017, Verma, a former consultant, has served as administrator of the Centers for Medicare & Medicaid Services (CMS). She oversees an annual budget of $1 trillion, mostly U.S. government payments for healthcare services covering over 100 million Americans, namely those above 65 as well as those with low-incomes.   

The report, after 17 months of investigation, was prepared by the staffs of four Democratic leaders in Congress, including Frank Pallone, Jr., head of the House Energy Committee and Carolyn Maloney, head of the House Oversight Committee. “Verma misused funds…and wasted taxpayer dollars intended to support critical federal health care programs,” Pallone and the others said in a statement. “Verma has shown reckless disregard for the public’s trust. We believe she should personally reimburse the taxpayers for these inappropriate expenditures.”

The Energy and Oversight committees have asked the Government Accountability Office to probe if the CMS’ expenditures violated the law. In July, the Office of Inspector General of the HHS found that CMS’ use of these same consultants violated multiple provisions of Federal Acquisition Regulation law.

Verma’s use of over fifteen highly paid consultants is contrary to her public call for fiscal restraint and championing policies like work requirements for Americans on Medicaid, the health insurance program for low-income people, Politico noted.

Critics also say Verma is not repairing the broken Medicaid system, with patients struggling to get care since many doctors refuse to accept Medicaid coverage. She “doesn’t have to look far to find an example,” notes Kaiser Health News, a non-profit covering health policy and politics. Verma’s husband Sanjay Mishra is a child psychiatrist and a partner and medical director of the Indiana Health Group. Mishra and the group do not accept patients who have Medicaid insurance. .

Back in 2018, Verma sought $47,000 in reimbursement from taxpayers for items stolen, reportedly including a $5,900 Ivanka Trump-brand pendant, while she was giving a speech in San Francisco. HHS reimbursed her only $2,852.40 of the total claimed, ABC News reported.

Verma comes from a consulting background. Before becoming CMS Administrator, Verma ran SVC,a health policy consulting company.she founded in 2001. Its focus is on figuring out ways the government can cut the costs of medicaid services based on “elements of personal responsibility, price- and quality-conscious healthcare consumption, and a focus on healthy lifestyles.”

Verma was an adviser to Vice President Mike Pence, when he was the governor of Indiana. For over 20 years, Verma has consulted on projects involving Medicaid, health insurance, and public health, with the federal government, Ohio, Michigan, Iowa, Maine and other state governments as well as private companies and foundations.

In March 2017, Verma sold SVC to Health Management Associates for an undisclosed amount. The terms of the sale were also not disclosed, including whether or not Verma owns, or will own, an ownership stake in HMA after she leaves her U.S. government job. HMA has over 255 consultants at 22 locations in the U.S.

Verma received her Master’s in Public Health from Johns Hopkins University and her Bachelor’s from the University of Maryland.She was born in Virginia.“She grew up in a Democratic household. I am a staunch Democrat,” her dad Jugal Verma, an immigrant from India, told The Guardian. 

As part of their work for the report by Congressional Democrats released today, the House Committees obtained tens of thousands of pages of documents from HHS and private parties, conducted interviews and briefings with employees and executives of two consulting firms used by Verma’s department, and collected additional information from databases, court records, and press reports, among other sources. The report contains over one thousand pages of previously non-public documents.

Approximately two dozen of the consultants retained through various contracts by Verma had strong ties to Republican political circles, including former Executive Director of the Trump-Pence transition team, the Report noted.

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