Policy Alert: Potential Government Shutdown, Impact on CMS Payments and Telehealth

Sept. 2025 

LUGPA is closely monitoring developments in Washington, D.C., as Congress works to pass funding legislation before the September 30, 2025, deadline. Without action, the federal government will shut down on October 1, 2025. While the situation remains fluid, independent practices must prepare for the possible consequences.

Key Impacts of a Government Shutdown

1. CMS Claims Processing and Payments

• In the event of a shutdown, the Centers for Medicare & Medicaid Services (CMS) will suspend all claims processing and payments beginning October 1, 2025. Payments will resume only after the government reopens.
• Practices could experience serious cash flow disruptions, especially those with a high proportion of Medicare patients. Smaller and independent practices, which lack the financial reserves of large hospital systems, are particularly vulnerable.

2. Telehealth Reimbursement

• The current health extender package, which authorizes reimbursement for telehealth services, expires on September 30, 2025. Without congressional action, telehealth visits will no longer be reimbursed, and there will be no retroactive coverage once the government reopens.
• This uncertainty may affect patient access, disrupt continuity of care, and force practices to reschedule or cancel telehealth appointments.

Recommended Actions for Practices

• Patient Communication: Proactively notify patients scheduled for telehealth visits on or after October 1 about the potential need to reschedule. Clear communication can help manage expectations and reduce patient frustration.
• Financial Planning: Review your practice’s financial reserves and consider contingency planning for possible delays in Medicare payments. Practices may want to evaluate credit lines or other resources to maintain stability during the shutdown.
• Scheduling Considerations: Where possible, consider adjusting the scheduling of elective services or visits to minimize disruption should CMS payments be delayed.
• Stay Informed: Continue monitoring updates from LUGPA and reliable news sources for real-time developments on funding negotiations and potential extensions of the health extender package.

LUGPA will continue to provide timely updates and advocacy on this issue. Protecting the viability of independent urology practices remains our priority, and we are engaging with policymakers to underscore the urgency of maintaining CMS payments and telehealth coverage.

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Read more about LUGPA's recent advocacy efforts and victories here.