The federal government shutdown is not expected to dismantle major healthcare coverage like Medicare, Medicaid, or Affordable Care Act plans. Still, critical support services and recent expansions are being rolled back or left in limbo.
As lawmakers remain at a standstill over budget negotiations, the broader health infrastructure that supports millions of Americans is beginning to feel the strain. Some benefits have already ended. Others, including funding for Community Health Centers (CHCs), may run out soon without congressional action.
Medicare Continues, but Telehealth Services See Abrupt Cutoff
While Medicare will keep functioning during the shutdown, many older adults have already lost access to a key service: telehealth. A pandemic-era rule that allowed Medicare patients to consult doctors from home, regardless of location, expired Tuesday when Congress failed to reauthorize funding.
According to KFF, a nonpartisan health policy research group, more than 6.7 million older adults used Medicare telehealth services last year. Now, under pre-pandemic rules, coverage is largely restricted to rural patients or those receiving home dialysis or post-stroke care.
“Telehealth is not a convenience thing,” said Joseph Furtado, president of the Arizona Association for Home Care. “This is Grandma can’t get out of the house. This is Grandma just came home from the hospital and she can’t get out to see her doctor. You don’t want to go to the doctor when you come home, and it’s dangerous sometimes to do that.” Furtado noted that some providers may stop offering telehealth without the guarantee of reimbursement.
Medicare coverage for in-person visits will continue. Because it’s categorized as a mandatory program, it does not rely on annual congressional funding approval. However, beneficiaries might experience longer wait times when calling Medicare services, and providers could face minor delays in payments due to staff furloughs, according to KFF policy analyst Alex Cottrill.
Health Centers and ACA Subsidies Face Uncertain Future
Funding for Community Health Centers, which serve around 52 million Americans, also expired with the shutdown. Although short-term operations are being maintained with reserve funds, continued operation depends on congressional approval. According to the National Association of Community Health Centers, the Health Resources and Services Administration has confirmed it has enough funds to sustain CHCs temporarily.
Meanwhile, ACA coverage remains active, but another deadline looms. Democrats are urging Congress to renew the enhanced Obamacare subsidies that made premiums more affordable for middle-class families.
Without an extension, costs could rise sharply in 2026 when the current subsidies expire, leading to a drop in enrollment during the open season beginning November 1. According to KFF, out-of-pocket premiums may increase by over 100% if subsidies lapse. Art Caplan of NYU Langone Medical Center warned this could have political consequences.
