Minnesota Medicare Claims on Hold as Shutdown Continues

October 16, 2025

Minnesota physicians should not expect to receive Medicare fee-for-service payments for services rendered on or after October 1 until the end of the federal government shutdown. 

The Centers for Medicare and Medicaid Services has ordered all Medicare Administrative Contractors (MACs) to prolong their temporary holds on Medicare fee-for-service claims impacted by provisions that expired on October 1. Unfortunately, all Medicare fee-for-service claims in Minnesota are impacted by an expired provision, and thus subject to the hold. 

The expired provision in question concerns the Geographic Practice Cost Indices (GPCI) floor. The GPCI is a payment multiplier that adjusts Medicare payments based on local practice costs. Since the Affordable Care Act, Congress has set a GPCI floor of 1.0, meaning that all providers, regardless of location, are paid at least the national average. Minnesota is one state that has benefited from this floor (i.e., the statewide work GCPI is 0.996 without the floor). However, Congress failed to extend the GPCI floor before its expiration on October 1.   

Physicians may submit claims during the shutdown, but payment will not be released until the hold is lifted. Physicians are advised to monitor their MAC’s website and this CMS webpage.   

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.