Federal Shutdown Halts Telehealth, Medicaid Programs Nationwide

The federal government shutdown beginning October 1, 2025, has significant impacts on healthcare, notably affecting telehealth services and Affordable Care Act (ACA) subsidies. Democrats demand the extension of enhanced ACA premium tax credits to keep insurance affordable, while Republicans resist including these in the funding bill, causing a stalemate that has led to the expiration of Medicare telehealth flexibilities and suspension of programs like hospital-at-home. The expiration of these telehealth flexibilities, originally expanded during the COVID-19 pandemic, means Medicare now reverts to pre-pandemic restrictions, leading providers to face potential denial of telehealth claims and challenges in delivering care, especially to rural and disabled populations. Healthcare providers like Petaluma Health Center report continuing telehealth visits without payment, underscoring the strain on nonprofit organizations serving vulnerable communities. Hospitals such as those in New Jersey have been forced to suspend hospital-at-home programs, which allowed patients to recover at home with medical support, negatively affecting patient care and recovery. The healthcare community widely criticizes Congress for failing to resolve these issues promptly, with advocacy groups highlighting the detrimental effects on millions of Americans relying on these services.