Medicare Blog

what happens with medicare payments if government shuts down?

by Mr. Paris Morissette Jr. Published 2 years ago Updated 1 year ago
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Medicare, Medicaid

Medicaid

Medicaid in the United States is a federal and state program that helps with medical costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and personal care services. The Health Insurance As…

and Social Security are mandatory spending, so payments will still be made during a government shutdown. However, other services such as benefit verification and card issuing would stop, according to the CRFB.

The Centers for Medicaid and Medicaid (CMS) has announced that there will be no disruption in the processing and payment of Medicare claims due to the partial government shutdown.

Full Answer

Is Medicare affected by the government shutdown?

A No. The Centers for Medicare and Medicaid Services has been funded through September 30, 2019, and its programs (Medicare and Medicaid) haven’t been affected by the partial government shutdown. Claims continue to be processed as usual.

What happens to your health insurance if the government shuts down?

Medicare, Medicaid and Social Security are mandatory spending, so payments will still be made during a government shutdown. However, other services such as benefit verification and card issuing would stop, according to the CRFB.

What happens to my Social Security benefits if the government shuts down?

So during the shutdown, you will still receive your Social Security and disability benefits. The federal government shuts down all “non-essential services." Also, there should be no disruption in processing your Medicare claims, or accepting new Medicare applications (as happened back in 1996 ).

Is there a disruption in processing my Medicare claims?

Also, there should be no disruption in processing your Medicare claims, or accepting new Medicare applications (as happened back in 1996 ). Medicare is an entitlement program and not subject to the appropriations process. In other words, the processing of Medicare claims is deemed "essential."

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Does government shutdown affect Medicare benefits?

Yes, Social Security benefits will continue to go out in the event of a government shutdown. That's because Social Security, Medicare and Medicaid are among the mandatory spending that isn't subject to annual appropriations from Congress.

Will Medicare shut down?

Question: Does the government shutdown affect Medicare enrollment, claims or support? Answer: No. The Centers for Medicare and Medicaid Services has been funded through September 30, 2019, and its programs (Medicare and Medicaid) haven't been affected by the partial government shutdown.

How to contact Medicare for a shutdown?

You can continue to contact Medicare’s toll-free 800-Medicare number (800-633-4227) with any questions on the program, although the phone lines tend to be busy early in the year; some other resources might be easier to reach, regardless of the shutdown. You can get help from your local State Health Insurance Assistance Program counselors, who can answer questions about Medicare enrollment, rules and appeals. You can find contact information for your local SHIP at www.shiptacenter.org. Another good resource is the Medicare Rights Center, which runs a national helpline and includes answers to many questions at Medicare Interactive. And you can find out about Part D and Medicare Advantage plans in your area through the Medicare Plan Finder. See Switching to a New Medicare Advantage Plan Gets Easier for more about when you can switch plans after open enrollment. Medicare.gov also has a lot of great resources to help answer your questions about Medicare coverage and rules.

Is Medicare and Medicaid funded?

Answer: No. The Centers for Medicare and Medicaid Services has been funded through September 30, 2019, and its programs (Medicare and Medicaid) haven’t been affected by the partial government shutdown. Claims continue to be processed as usual.

What services will be available during a shutdown?

All essential services will continue during a shutdown. This includes your Social Security and disability checks. So during the shutdown, you will still receive your Social Security and disability benefits.

When does shutdown furlough happen?

Shutdown furloughs happen at the beginning of the fiscal year if no funding has been allocated. Congress and the President must approve twelve appropriations bills in order to continue providing funding for government operations. These bill give the funding needed for the various government agencies, including the Social Security Administration.

Will Medicare be affected by the shutdown?

While your checks and processing of Medicare will still occur, some sections of the Social Security Administration will be affected during a shutdown. Many SSA employees would be placed on furlough, so you'll have fewer government resources available to you such as people available in your local administration office. Also, benefit verification, e.g. when you are applying for loan, and issuing Social Security cards would cease.

Is there a disruption in processing Medicare claims?

Also, there should be no disruption in processing your Medicare claims, or accepting new Medicare applications (as happened back in 1996 ). Medicare is an entitlement program and not subject to the appropriations process. In other words, the processing of Medicare claims is deemed "essential."

What is the shutdown contingency plan for FY2012?

In the HHS shutdown contingency plan for FY2012, “Operations of the Center for Consumer Information and Insurance Oversight would continue as funding was provided through the Affordable Care Act.”

What would happen if the government shut down?

If the federal government is forced to shut down as a result of a budget impasse in Congress, discretionary programs and federal employees would be the most affected, while payments for Medicare services, the Affordable Care Act ( ACA ), and other mandatory programs would continue, albeit at a slower rate if the government were to undergo a long term shut down. For example, during the 1995–1996 government shutdown, Medicare continued to pay physicians and hospitals according to prevailing payment rates, since claims are made out of the Medicare trust funds and not current appropriations.

What will happen if Congress fails to replace the sequester?

If Congress fails to replace the “sequester” in the Continuing Resolution or upcoming debt limit legislation, Medicare providers will face an additional 2% reduction in FY2014, on top of current sequestration levels.

What happened to the credit rating in 2011?

A delay in raising the debt ceiling before near default in 2011 resulted in the first-ever downgrade in the U.S. credit rating and a sharp drop in the stock market.

How much was sequestration cut in 2013?

In 2013, sequestration cut about $85 billion in equal parts from national security and other spending. Unless Congress acts, similar cuts will hit early in 2014 and for eight subsequent years.

What does "Oct 1" mean?

Oct. 1: Funding to continue running the country expired, meaning that much of the government is shut down.

How many federal employees were furloughed in 1995?

But many facilities will close and many services will be unavailable. In a five-day shutdown in 1995, 800,000 federal employees were told not to report to work. Several weeks later, 240,000 employees were furloughed in a 21-day shutdown. 4.

What government services are still in service?

This means that the military, air traffic controllers, the Border Patrol, the FBI, prison guards and many other U.S. government employees will remain on duty. But many facilities will close and many services will be unavailable.

How long do you have to wait to get Medicare if you are on Social Security?

By law, Social Security disability recipients must wait two years from the date of their receipt of disability benefits to qualify for Medicare.

When did the Social Security Administration stop processing new applications?

During the 1995-96 government shutdown, the Social Security Administration stopped processing new applications for benefits, although as the shutdown dragged on, the agency eventually brought in more employees and renewed the process. It may be harder to get questions answered and problems dealt with.

What happens if Congress cannot raise the debt ceiling?

If Congress cannot agree to raise the ceiling, the U.S. could default on its debt with potentially catastrophic effects on the economy. A debt default could also spark a global recession. The treasury secretary warned on Tuesday that the U.S. might not be able to fulfil its commitments if an agreement is not reached by October 18.

Why did the Senate block a bill passed by the House of Representatives that would have provided funding?

On Monday, Senate Republicans blocked a bill passed by the House of Representatives that would have provided funding—because it also raised the debt ceiling, which has become a focus of partisan division. An agreement to avert a shutdown could still be reached.

What happens if no deal is reached?

If no deal is reached, the federal government will shut down despite the COVID-19 pandemic. No shutdown has ever taken place in such circumstances before and it's not clear how it would affect the government's response.

What government services would continue during a shutdown?

These include air traffic control, law enforcement, border protection, medical care in hospitals and maintenance of the power grid.

Is National Park open during shutdown?

You may not be able to visit your favorite National Park during the government shutdown. The parks that did remain open during the 2018-19 shutdown did not offer visitor services. In addition to an estimated $500 million in lost revenue, some parks reported a build-up of trash.

Is Medicare still being used during the shutdown?

Medicare, Medicaid and Social Security are mandatory spending, so payments will still be made during a government shutdown. However, other services such as benefit verification and card issuing would stop, according to the CRFB. This could be a problem for some people, as benefit verification can be a requirement when applying for loans or mortgages, as well as services that require proof of income.

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