The federal government has shut down as of October 1, 2025. It is unclear when the U.S. government will resume normal operations. In the meantime, seniors may have questions about the impact they can expect, particularly on Medicare and Social Security benefits. The good news is that essential services are expected to continue without interruption.
Why Has the U.S. Government Shut Down?
Government shutdowns occur when lawmakers fail to agree on funding allocations, resulting in funding gaps. The shutdown will last until a deal is reached, which could happen quickly or take weeks.
According to CNN, there have been 14 federal government shutdowns since 1981. Some only lasted a single day, but a small number stretched on for weeks. The longest shutdown lasted 35 days, from December 22, 2018, to January 25, 2019.
What Shuts Down During a Government Shutdown?
Despite the government shutdown, some federal employees will continue to work and provide necessary services.
AP News explains that non-excepted employees will be furloughed, meaning they will be temporarily laid off during the shutdown. However, excepted employees – those whose work is necessary to protect life and property – will continue to work, although they won’t get paid until the shutdown ends. Services funded by mandatory spending also typically continue to operate during a shutdown.
This means that essential services continue during a shutdown, while non-essential services stop. ABC News reports that hundreds of thousands of federal employees will continue to work, providing services such as air traffic control, but national parks and Smithsonian museums may close.
How Does the Government Shutdown Impact Medicare and Medicaid?
Medicare and Medicaid coverage will continue during the shutdown.
According to the American Health Care Association, HHS has a contingency plan to maintain staffing and funding for certain programs, including Medicare and Medicaid payments to providers and states. Although there may be some delays, disruptions should be minimal.
HHS clarifies that the Medicare program will continue, and CMS has sufficient funding for Medicaid through the first quarter of FY 2026. However, some activities will pause, including policy and rulemaking and beneficiary casework. Approximately half of CMS workers are excepted and will continue working.
What About Medicare Telehealth Flexibilities and the Acute Hospital at Home Program?
Medicare telehealth flexibilities have been extended multiple times since the COVID-19 pandemic. However, according to Fierce Healthcare, these extensions have ended as of September 30, 2025. The Acute Hospital at Home program has also ended.
It is unclear whether these programs will be extended again once a new funding deal is reached and the shutdown ends. However, for now, these programs have stopped. As a result, Medicare enrollees who depend on these programs to receive care remotely or from their homes may no longer have coverage for these benefits.
How Does the Government Shutdown Impact Social Security?
The Social Security Administration says it will continue to send benefits out on time. Additionally, local offices will remain open, and people can go there for help with urgent services, such as applying for benefits, changing their address or direct deposit information or obtaining a replacement Social Security card. However, certain services will be paused due to staffing shortages, including proof of benefits letters and updates or corrections to earnings records.
The Social Security Administration urges people to create a my Social Security Account to manage their benefits.
The Takeaway for Seniors
Your senior clients may be relieved to know that Medicare coverage or Social Security benefits are considered essential and should continue. Even if the shutdown lasts for weeks, the Medicare open enrollment period is expected to occur as usual.
However, it may be more difficult to reach CMS staff with any questions or issues during the shutdown, and some less common Social Security requests may need to wait until the shutdown ends.
Medicare enrollees should reach out to their insurance agent if they need guidance.
Do you have questions? Contact Western Asset Protection.