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Posted: 2023-11-03T18:35:00Z | Updated: 2023-11-03T20:37:22Z

In a rare break with President Joe Biden, Democrats on the Senate Finance Committee on Thursday quietly voted to reject one of his nominees to a key board overseeing the finances of Social Security and Medicare .

Democratic Sens. Elizabeth Warren (Mass.), Ben Cardin (Md.), Sheldon Whitehouse (R.I.) and Bob Menendez (N.J.) voted against advancing Demetrios Kouzoukas nomination to be a public trustee on the Board of Trustees for Medicare and Social Security Programs, which oversees the financial operations of both of the social safety net programs.

His nomination still advanced to the Senate floor though, in a 23 to 4 vote, with the help of other Democrats and all Republicans on the committee.

Kouzoukas hasnt gotten much media attention. Thursdays committee vote wasnt livestreamed. Hes not a nominee for a particularly flashy role.

But Warren has been railing against his nomination for weeks, calling out his egregious conflict of interest for this position. Kouzoukas, if confirmed to the public trustee role, would simultaneously be on the board of directors for Clover Health, a for-profit company that makes its money through Medicare Advantage.

The concern is that Kouzoukas has a financial incentive to put Clover Healths interests first, at the same time that he would have influence over how the U.S. government oversees Medicare Advantage. If confirmed, he would shape the annual reports released by the Board of Trustees for Medicare and Social Security Programs, which have mentioned risk score-related overpayments several times since 2011. He could affect government decisions on whether or not to focus on fraud in Medicare Advantage.

Meanwhile, privately run, government-funded Medicare Advantage plans have been overcharging taxpayers by as much as $140 billion per year , per one September report.

There has never been a public trustee who served on the board of a private insurer at the same time that they were a public trustee, Warren said in Thursdays hearing, noting that Kouzoukas has repeatedly refused to answer questions about his salary at Clover Health.

This is a terrible precedent for us to establish, she said.