Medicare telehealth coverage lapsed when the government shut down

The federal government shutdown is affecting many Americans in different ways, including seniors who had been using telemedicine services for healthcare. Those services were suspended with the U.S. government closed on Oct. 1.

ATA Action, the advocacy arm of the American Telemedicine Association, has sent letters to President Trump and congressional leaders asking for an immediate reinstatement of Medicare telehealth waivers and the Acute Hospital Care at Home program. 

The group also urged lawmakers to pass retroactive reimbursement provisions so doctors and hospital systems aren’t penalized for treating patients virtually during the coverage lapse caused by the federal government shutdown.

“These flexibilities have been in place since 2020, and this is the first time they’ve lapsed,” said Kyle Zebley, executive director of ATA Action and senior vice president of public policy at the ATA. “Medicare patients woke up on October 1st without telehealth coverage for the first time in five years. Our healthcare services are regressing, falling woefully short for millions of patients in need.”

Zebley said many providers are continuing virtual care “at their own financial risk,” unsure if they’ll ultimately be paid for it. He called on Washington “telehealth champions” to ensure continuity of care and protect hospitals and clinics that rely on remote monitoring and digital consultations to reach rural and homebound patients.

When it began

Telehealth exploded during the COVID-19 pandemic, when federal emergency declarations removed barriers that had long restricted remote care. Medicare temporarily waived geographic and facility limitations, allowing patients to see their doctors via video or phone from home. 

According to ATA, utilization soared, with some specialties — including mental health and chronic disease management — seeing sustained telehealth adoption even after in-person visits resumed.

But as emergency authorizations ended, Congress repeatedly extended the flexibilities in short-term increments. This latest lapse — tied to the broader shutdown of certain government functions — is the first interruption since those 2020 reforms began.

ATA said the sudden stop has caused confusion among providers and patients alike. Seniors accustomed to digital check-ins with their primary care teams were told their appointments might no longer qualify for Medicare reimbursement. 

Hospitals have scrambled to interpret guidance and update billing systems while lobbying for quick legislative repair.

Bipartisan support

Lawmakers on both sides of the aisle have historically backed telehealth expansion. Congress voted overwhelmingly in 2022 and again in 2023 to prolong coverage, citing strong patient satisfaction and cost efficiency.

But as the new Congress faces competing priorities — including budget negotiations and shutdown fallout — telehealth advocates fear delays could stretch into weeks or months.

Zebley emphasized that the Trump administration played a pivotal role in mainstreaming telehealth during his first term. 

“President Trump has been the most transformative president in history for the telehealth and virtual care community,” he said. “No one is in a better position to end this cycle of short-term thinking and make these vital flexibilities permanent.”

What to do

• Verify coverage: Contact your provider or Medicare representative to confirm whether telehealth visits remain billable.
• Ask about alternatives: Some clinics may offer discounted cash rates until reimbursement returns.
• Stay connected: Keep portals and remote-monitoring devices active — continuity of data helps even if billing lags.
• Document care: Save notes, visit logs, and communications in case retroactive reimbursement is approved.
• Watch for updates: Check CMS.gov or the ATA website for policy reinstatement news.