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White House aides said President Trump stood by his embattled Medicare and Medicaid chief, Seema Verma, amid reports that she had requested that taxpayers reimburse her $47,000 for property stolen on a trip, including jewelry priced at more than $40,000. The reimbursement request, reported in Politico over the weekend, was the latest revelation in a string of reports that have portrayed the upper echelons of the Department of Health and Human Services as divided on policy and personality, and roiled by expenditures that have come under scrutiny. (Abelson and Goodnough, 12/10)

HHS said in a statement that it was “perfectly appropriate” for Verma to file the loss claim, which covered clothing, jewelry and other items in her luggage that were stolen while she was giving a speech in San Francisco in July 2018. The department said she was partially reimbursed under a government policy that provides coverage at a “discounted rate” for certain items based on their age and condition, but it does not reimburse for jewelry. (12/9)

An internal review by the Centers for Medicare and Medicaid Services into news stories critical of its administrator found that officials at CMS’s parent agency may have been the source of some leaks, according to a copy of the report reviewed by The Wall Street Journal. The confidential investigation marks a new twist in a broader conflict between Health and Human Services Secretary Alex Azar and CMS Administrator Seema Verma. (Armour, 12/9)

Rep. Joe Kennedy (D-Mass.) Monday became the first lawmaker to call on the official overseeing Medicare, Medicaid and Obamacare to resign over POLITICO reports he said reveal “a gross misuse of public funds.” ... “We have now seen a systemic effort by the administrator to use public funds to elevate her own position,” Kennedy said in an interview, adding that CMS has largely ignored his questions about Verma's PR contractors, which were revealed by POLITICO earlier this year. Verma testified in October that the outside contracting work was "consistent" with CMS practice and was intended to promote the agency's agenda. (Diamond, 12/9)

The acting HHS inspector general is stepping down, marking the second leadership transition this year atop the agency watchdog that is investigating a top federal health official. Joanne Chiedi, who's served as principal deputy inspector general for six years, will retire from the federal government Dec. 31, a spokesperson said. Chiedi became acting inspector general after the May 31 retirement of Daniel Levinson, who led the office for 15 years. (Diamond, 12/9)