A revised CMS notice issued on October 15, 2025, stated that claims under the physician fee schedule and other payment programs will continue to be processed and paid on time. The only exceptions are claims associated with expired programs, such as telehealth flexibility. In reversing its earlier guidance, CMS clarified that payment holds will apply only to claims related to programs that have lapsed.
The revised notice reads:
“Effective October 1, 2025, CMS instructed all Medicare Administrative Contractors (MACs) to hold claims with dates of service of October 1, 2025, and later for services impacted by the expired Medicare legislative payment provisions passed under the Full-Year Continuing Appropriations and Extensions Act, 2025. Considering the continuing government shutdown, CMS will continue to process and pay held claims in a timely manner except for select claims for services impacted by the expired provisions. To date, no payments have been delayed as statute already requires all claims to be held for a minimum of fourteen days, and this recent hold is consistent with that statutory requirement. Providers may continue to submit claims accordingly.”
The ongoing government shutdown, which began on October 1, stems largely from disagreements over health care funding. Democrats are refusing to support a short-term spending bill unless it includes an extension of the enhanced Affordable Care Act (ACA) subsidies—expanded during the COVID-19 pandemic and set to expire at year’s end.
President Trump and Republicans, meanwhile, are pushing for a “clean” continuing resolution that maintains current funding levels through mid-November while deferring debate on health policy issues.