LUGPA Policy Alert: President Trump Signs Government Funding Bill into Law, Officially Ending Shutdown and Extending Key Healthcare Provisions

November 2025

In a bipartisan breakthrough, Congress has passed comprehensive funding legislation to end the historic federal government shutdown that began on October 1, 2025—the longest in U.S. history at 43 days. The Senate approved the measure earlier this week by a 60–40 vote, followed by its passage in the House on November 12. President Trump signed the bill into law on Wednesday, November 12, 2025, officially reopening federal agencies and providing back pay for furloughed employees.

The package funds most federal operations through FY 2025, with select programs extended through January 30, 2026. Critically, it restores and extends several expired Medicare provisions that lapsed during the shutdown, offering immediate stability for independent practices already strained by the 2026 Medicare Physician Fee Schedule’s -2.5% efficiency adjustment.

The agreement includes a continuing resolution (CR) extending government funding through January 30, 2026, alongside several targeted healthcare and administrative measures:

  • Senate Vote on ACA Subsidies: A December vote on a Democratic-led health care bill, likely addressing the enhanced Affordable Care Act premium subsidies expiring at the end of 2025, is the primary issue that triggered the shutdown.
  • Three Fiscal 2026 Spending Bills: Covering agriculture, military construction, and legislative agencies.
  • Reversal of Federal Workforce Reductions: Rescinds reduction-in-force (RIF) actions since October 1 and protects against additional layoffs through January 30.

Healthcare Extenders of Importance to Urology

  • Medicare Telehealth Flexibilities: Fully restored and extended through January 30, 2026, reinstating waivers on geographic and originating site restrictions, allowing home-based visits, expanding eligible practitioners, and preserving audio-only behavioral health services. It also reinstates the use of telehealth for Hospice recertification.
    These flexibilities, critical for urology follow-ups, post-procedure monitoring, and rural access, had reverted to pre-2020 limits during the shutdown.
  • 1.0 Work RVU GPCI Floor: Retroactively reinstated nationwide through January 30, 2026, preventing reimbursement cuts of up to 10–20% in lower-cost regions and directly benefiting non-metropolitan urology practices.
  • Delay of PAMA Lab Cuts: Payment reductions under the Protecting Access to Medicare Act are delayed through January 30, 2026, stabilizing diagnostic costs.
  • Quality Measure Endorsement and Selection Funding: Extended through January 30, 2026.
  • PAYGO Sequestration Prevention: Averts statutory 4% Medicare cuts, preserving payment stability.

Notably absent: The bill does not extend enhanced ACA premium subsidies, which are set to expire December 31, 2025. Without further action, millions could face higher premiums and reduced coverage in 2026.

Return to Normal Operations: Retroactive Telehealth Payments

With federal agencies reopening, HHS and CMS will resume normal operations and address the backlog created during the shutdown. Expect delays as agencies restart key functions, including surveys, certifications, and enforcement activities.

During the government shutdown, CMS initially placed a hold on most Medicare fee-for-service and telehealth claims for services provided on or after October 1, 2025, due to expired legislative payment provisions. By October 21, CMS directed Medicare Administrative Contractors to lift the hold for most fee-for-service, ground ambulance, and FQHC claims, including telehealth claims covered under the Physician Fee Schedule. However, holds remained in place for certain telehealth services not related to behavioral or mental health care, as well as programs such as acute Hospital Care at Home.

The new law should authorize retroactive payment for eligible telehealth claims dating back to October 1, 2025, restoring reimbursement under the reinstated flexibilities. CMS is expected to issue implementation guidance and process held claims in a timely manner. This provision could prevent significant revenue losses, estimated at thousands of dollars per practice for urology telehealth volumes.

Impact on Independent Urology Practices

The 43-day shutdown exacerbated the financial impact of expiring payment adjustments and pending laboratory cuts, resulting in delayed critical Medicare payments and interruption of telehealth services used for chronic disease management, oncology surveillance, and postoperative follow-up.

These disruptions highlight the vulnerability of community-based medical practices to federal inaction and underscore the need for stable, long-term reimbursement.

LUGPA Advocacy Statement

LUGPA applauds congressional passage and the President’s signing of this funding package, which restores payment stability for independent practices.

The shutdown reinforced the importance of protecting physicians and patients from policy-driven disruptions. LUGPA will continue to work with lawmakers and regulators to secure:

  • Permanent telehealth parity
  • Sustainable Medicare reimbursement
  • Site-neutral payment reform
  • Stable access to high-quality, community-based urologic care

 


 

Read LUGPA's November 2025 Advocacy Update