Due to the U.S. government shutdown that began at midnight on Oct. 1, approximately 32,000 employees at the Department of Health and Human Services (HHS) have been placed on furlough. As a result, certain activities across key agencies, including the Food and Drug Administration (FDA), Centers for Disease Control and Prevention (CDC), Centers for Medicare and Medicaid Services (CMS), and National Institutes of Health (NIH), have been paused or slowed. These include:

  • Facility surveys and certifications

  • Processing of new drug applications

  • Responding to public health inquiries

  • Issuing new scientific research grants

CMS claims and telehealth are also affected by the shutdown.

With the expiration of fiscal year 2025 funding and related legal authorities, CMS has directed all Medicare Administrative Contractors (MACs) to hold claim payments temporarily. While providers can continue to submit fee-for-service claims and MACs will continue to process them, payments will not be released until the hold is lifted. Additionally, Medicare telehealth rules that were in place before the COVID-19 Public Health Emergency are now reinstated, except for services related to behavioral or mental health. Important note for providers: If you plan to provide telehealth services to Medicare beneficiaries on or after Oct. 1, 2025, be aware that most of these services may no longer be reimbursable. You should issue an Advance Notice of Beneficiary Noncoverage (ABN) to inform patients ahead of time if telehealth care may not be covered.