What Continues During the Shutdown
- Medicare Program – Benefits and core program operations continue without interruption.
- Medicaid – CMS has funding to support state Medicaid programs for the first quarter of FY 2026 through previously approved appropriations.
- Children’s Health Insurance Program (CHIP) – Payments to eligible states will continue.
- Health Care Fraud and Abuse Control (HCFAC) – Oversight and enforcement activities remain active.
- Center for Medicare & Medicaid Innovation (CMMI) – Innovation and demonstration activities continue.
- Federal Marketplace – Activities such as eligibility verification will proceed, supported by carryover user fees.
What Will Be Paused or Delayed
- Health Facility Inspections – Only urgent complaint investigations (serious patient or resident harm) will move forward; routine inspections and less serious investigations are paused.
- Policy and Rulemaking – Development of new payment rules and policies will likely experience delays due to reduced staff capacity.
- Contract Oversight – Oversight of major contractors, including Medicare Administrative Contractors and call centers, will be limited.
- Outreach and Education – National and local education initiatives, mailings (including Medicare cards), and other public-facing activities will be curtailed.
- Beneficiary Casework – Most beneficiary support services will be suspended during the lapse.
CMS Staffing During the Shutdown
- CMS is retaining about 53% of its workforce (3,311 employees) to keep critical operations running.
- Exempt staff (about 50%) – Continue to work because their roles are supported by alternative funding sources (such as HCFAC, user fees, or Inflation Reduction Act funds).
- Excepted staff (about 3%) – Legally allowed to work because their duties are necessary to maintain essential funded programs, primarily Medicare.
- Commissioned Corps members – All 84 members assigned to CMS will remain on duty.
Key Takeaway
While the shutdown limits CMS’s capacity in policy, oversight, and education, customers can be reassured that Medicare, Medicaid, CHIP, fraud prevention, and Marketplace services continue without interruption.
https://www.hhs.gov/about/budget/fy-2026-cms-contingency-staffing-plan/index.html
https://www.hhs.gov/about/budget/fy-2026-hhs-contingency-staffing-plan/index.html
https://www.hhs.gov/about/budget/fy-2026-fda-contingency-staffing-plan/index.html
