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Government Shuts Down, but SNF Medicare-Medicaid Payments Continue

Freestyle4 min readOct 1, 2025

The federal government shutdown that started overnight Oct. 1 will not stop Medicare and Medicaid payments to long-term care providers for the near term, but the impact of the funding crisis will likely spill over into some areas of the skilled nursing sector like the provisions for certain telehealth services and survey and certification activities, industry advocates and the Centers for Medicare & Medicaid Services (CMS) said.


Without any positive movement in congressional talks with the White House over the last week, the big question shifted in recent days to how long a shutdown would last versus whether it would happen at all. Optimism is hard to find, given the deep divide between Republicans who control the House, Senate, and White House, and minority party Democrats, who want subsidies in the Affordable Care Act maintained before signing off on any funding deal.


As far as the vital flow of federal government funds from the Medicare and Medicaid programs to providers, there is no expectation for any issues to arise given the funding is “mandatory” and not tied to the congressional battles of the day.


Mark Parkinson, CEO of Park Place Live, and former head of the American Health Care Association/National Center for Assisted Living (AHCA/NCAL), said past shutdowns should give providers confidence even if the shutdown raises concerns for stakeholders.


"We've been through shutdowns multiple times and on every occasion the government has continued to make Medicare payments to providers,” he said. “I expect that will be the case this time as well, but we need the associations to stay vigilant and make sure that is the case. I know that AHCA is working on this to make sure that providers continue to get paid."


Clif Porter, president and CEO of AHCA/NCAL, in a statement released at the start of the shutdown said, “Seniors, their loved ones, and their caregivers can rest easy that their long term and post-acute care will be minimally impacted by this government shutdown.”


“Medicare and Medicaid are mandatory spending programs that will continue for the time being. While some providers and beneficiaries may need to make temporary adjustments if they are impacted by the expirations of telehealth waivers, we are encouraged that providers will be able to maintain continuity of care during this time.”


Porter added that association is “hopeful that congressional leaders will reach a swift resolution and look forward to resuming our work with lawmakers on policies that will further support our nation’s seniors and their caregivers.”


Even though payments will continue, previous shutdowns have seen Medicare operations like enrollment and audit activities curtailed, industry sources said.


On Oct. 1, CMS published a memo outlining its shutdown protocols, listing what programs and activities are and are not ongoing.


“Pursuant to the federal government shutdown, we are doing our utmost to: Protect Medicare and Medicaid beneficiaries against immediate dangers to life and health, and Prevent providers and suppliers from experiencing interruptions that would threaten their ability to provide healthcare services that are vital to Medicare and Medicaid beneficiaries,” the memo said.


As an example, CMS details in the memo which types of enforcement actions will remain active versus which survey and certification activities will be inactive for the shutdown. See the memo at:


QSO-25-29-ALL.


Comments or questions? Please contact Patrick Connole at pconnole@parkplacelive.com.


Government Shuts Down, but SNF Medicare-Medicaid Payments Continue

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