Update: Federal Government Shutdown – October 2025

On October 1, 2025, the U.S. federal government entered a shutdown due to a lapse in funding. While some federal services are paused, key health programs remain active.

Programs That Continue Operating

  • Medicare, Medicaid, and CHIP – Coverage and payments continue
  • Social Security benefits – Payments still being processed
  • Veterans’ health services – VA hospitals, clinics, and counseling centers remain open
  • TRICARE medical and dental care – Urgent/necessary care continues (elective procedures may be delayed)
  • Federal health insurance exchanges – Marketplace services are active
  • U.S. Postal Service – Mail and prescription deliveries continue without interruption
  • Air travel safety services – Remain operational

Medicare Claims Processing

– CMS may place a temporary hold (up to 10 business days) on Medicare claims.
– Providers should continue submitting claims during this period.
– The impact is expected to be minimal due to existing payment schedules.

Telehealth Services

– Some COVID-era Medicare telehealth flexibilities have expired as of October 1,  2025.
– Providers offering non-covered services should issue an Advance Beneficiary Notice (ABN) to patients.
– Consider holding claims that are not payable by Medicare.
– Monitor CMS updates for the latest guidance.

What’s Next

Federal employees and impacted programs will return to normal operations once funding legislation is passed and signed into law. 

https://www.hhs.gov/about/budget/fy-2026-hhs-contingency-staffing-plan/index.htmlhttps://department.va.gov/contingency-planning/

https://about.usps.com/newsroom/statements/092525-postal-service-not-affected-by-a-government-shutdown.htm

https://www.dhs.gov/sites/default/files/2025-09/2025_0929_dhs_procedures_related_to_a_lapse_in_appropriations.pdf

⚓ Guidance you can trust from AskMueller Consulting, LLC

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