Federal Government Shutdown Impacts Minnesota Healthcare

October 2, 2025

The federal government shutdown will affect the Minnesota healthcare system in several important ways. 

Medicare Telehealth Coverage 

As of October 1, fee-for-service Medicare coverage of audio-only telehealth services has expired.  

Moreover, fee-for-service Medicare coverage of telehealth services provided to patients in their homes has expired in most cases. Exceptions for at-home telehealth coverage include cases in which the patient lives in a rural location, the patient is being treated for a mental health or substance use disorder, or the provider is participating in certain Medicare Shared Savings Program accountable care organizations (ACOs).  

Medicare Payment Claims Hold 

As with past federal shutdowns, the Centers for Medicare and Medicaid Services (CMS) has instructed Medicare Administrative Contractors (MACs) to enact a temporary Medicare fee-for-service claims hold of 10 days. This hold should not have a substantive effect on physicians due to the 14-day payment floor (i.e., a regular, required waiting period before MACs can pay submitted claims). Physicians may submit claims during this period, but payment will not be released until the hold is lifted. A prolonged shutdown may result in payment delays, depending on how each MAC’s contract is structured and the duration of the shutdown. Physicians are advised to monitor their MAC’s website and this CMS webpage.  

Major Public Programs Unaffected in Short Term 

Veterans Affairs Health Care, Medicaid, MinnesotaCare, the Children’s Health Insurance Program (CHIP), and the Vaccines for Children (VFC) program are not expected to be disrupted by the federal shutdown, at least in the short term. The Women’s, Infants, and Children (WIC) and Supplemental Nutrition Assistance Program (SNAP) are also not expected to be disrupted in the short-term. However, the longer the shutdown lasts, the more vulnerable these programs become to inefficiencies and delays. 

Major HHS Services Unaffected in Short Term 

According to the U.S. Department of Health and Human Services’ (HHS) website, the following activities will continue during the shutdown: 

• The National Institutes of Health (NIH) will continue research and clinical activities to protect human life or government property. 

• The Centers for Disease Control and Prevention (CDC) will continue monitoring for disease outbreaks. 

• The Food and Drug Administration (FDA) will continue supporting food and medical product recalls, monitoring and responding to outbreaks related to foodborne illnesses, and continue to exempt activities to support drug and medical device reviews. 

The MMA will continue to educate its members on the impacts of the federal shutdown. Please contact Adrian Uphoff, manager of health policy and regulatory affairs, with questions.