As the U.S. goverment continues to be shutdown, doctors who bill Medicare are being told that payments may be paused or delayed temporarily while the funding impasse continues. Providers and medical associations warn that even though Medicare is considered a mandatory program and traditionally continues operating during a shutdown, administrative slowdowns and funding constraints could disrupt reimbursements to physician practices.
Federal guidance indicates that core operations of the Medicare program, including claims processing, are intended to continue during lapses in federal funding. But in practice, some physicians say they are seeing delays. According to statements from medical groups, although Medicare payments are not officially cut off, the shutdown is creating uncertainty about how quickly reimbursements will flow. One trade group noted that critical programs tied to discretionary funding have expired, and while Medicare and Medicaid are broadly protected, a shutdown can still strain the system.
Physicians have expressed concern about cash flow for their practices if reimbursements are delayed. Many medical practices rely on a steady and predictable inflow from Medicare to cover operating costs—staff salaries, rent, medical supplies—and interruptions could force some smaller practices to postpone investments or reduce services.
The shutdown also coincides with changes to telehealth authority. Expanded telehealth flexibilities that had been in effect during the COVID-19 emergency have lapsed. Without new authorization from Congress, providers may deliver telehealth services but not be reimbursed for them under traditional Medicare, putting pressure on care continuity for patients who rely on remote care.
Regulators are expected to issue more detailed guidance in the coming days about which Medicare functions will be prioritized and how claims will be handled during the funding stalemate. Meanwhile, physician groups and hospital systems are urging Congress to restore funding quickly and settle back pay for delayed payments. The longer the shutdown drags on, the greater the risk that more significant administrative and financial complications could develop for providers and patients alike.