The US government shutdown that lasted throughout October 2025 is still having repercussions on American society. Everything was in chaos; agencies closed and everyone was left in limbo, not knowing exactly what to do. This was the case for Medicare and Medicaid service centers, which began rejecting bills when permits to conduct medical appointments remotely expired during the government shutdown.
However, the government decided to leave all those doctors and clinics that continued to treat their Medicare patients unpaid. In fact, the CMS has already confirmed that telehealth services provided during the federal government shutdown will be paid retroactively. Both medical providers and patients will be exempt from any financial penalties for receiving or providing medical care during the federal government shutdown.
CMS retroactive payments
CMS officially confirmed the news on November 20, 2025. Until January 30, 2026, all Médic Air telehealth flexibilities will be reinstated for services provided remotely.
Claims for the period from October 1, 2025, to the end of January 2026 will also be processed under the same rules that were in effect before the federal government shutdown. They will be treated as if no lapse had occurred, so all physicians and health clinics are asked to resubmit invoices that had previously been rejected.
The announcement comes as welcome news after three weeks of confusion for healthcare providers, who were left completely helpless after the temporary expiration of key telehealth authorizations. The extensions that allowed Medicare beneficiaries to receive telehealth services regardless of their geographic location or place of origin were no longer in effect. Without this flexibility to treat patients, Medicare administrative contractors were unable to determine whether many claims complied with previous legislation, resulting in massive withholdings and refunds.
CMS says the problem has been resolved, and Congress will retroactively extend the telehealth provisions.
The updated CMS guidance
Under the revised policy, Medicare beneficiaries can continue to receive telehealth services from home until January 30, 2026. This coverage also applies to services provided during and after the shutdown, as long as all standard Medicare billing and coverage requirements are met.
If a bill was sent during the federal government shutdown and was rejected, it is best to resubmit it so that it can be processed correctly.
Remote Medicare over the years
Before the COVID pandemic in 2020, Medicare was very strict about what could be considered a remote medical consultation. Previously, video calls were only allowed if the patient lived in a very remote rural area.
Even then, the patient had to go to a local clinic to connect and talk to a doctor. It wasn’t until 2020 that, to prevent the spread of infection, the government created flexibilities that suddenly allowed any elderly person in the United States to see their doctor via video call—or even just a phone call—from their own home. Despite this, the doctor charged for this medical consultation as if they had been in front of the patient.
This new adaptation to new technologies was a massive success. Suddenly, many elderly people with mobility issues could receive healthcare without having to make a superhuman effort to leave their homes.
The federal government has renewed coverage until the end of January 2026, but we are still not sure whether they will maintain the flexibility that was granted during the COVID pandemic. For now, both seniors and doctors can breathe easy knowing that their medical bills for these months will be paid by Medicare.
FAQs
Will telehealth bills from last October be paid?
Yes, claims from the shutdown period will be paid retroactively.
What should providers do if their claims were rejected during the shutdown?
Providers must resubmit their invoices. Send back any bills that were rejected during the shutdown so they can be processed under the restored rules.