Will Medicare Be Affected by the Government Shutdown? Here's What Retirees Need to Know

The government shutdown that began on Oct. 1 represents the 21st shutdown since 1976. The longest shuttering of capital offices lasted 35 days, from Dec. 22, 2018, to Jan. 25, 2019. Each shutdown ushers in questions and concerns regarding which departments will close, and how many people will go without a paycheck or government benefit.

If you're on Medicare, the issue you may be most interested in is how this shutdown is likely to affect you and your access to dependable healthcare in retirement. Here's what you need to know.

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Coverage

The good news is that Medicare is funded through mandatory spending, so it's not subject to annual budget approvals. Politicians can argue among themselves until the cows come home, but Medicare funding is safe. Core Medicare benefits like doctor visits, hospital care, and prescriptions continue as though nothing happened.

Enrollment

Social Security covers more than monthly benefit payments. If you're turning 65 or qualify for Medicare due to a disability, you can still enroll by filling out an application through the Social Security Administration (SSA). Due to staffing reductions at the SSA, the fastest path to enrollment is through the agency's website. If you don't mind waiting a little longer than usual, you can still enroll via telephone.

(Potential) delays

Delivery of your Medicare card may be delayed due to the shutdown, but even if that does happen, there's nothing to worry about (unless you really want to show off that new Medicare card). Most medical providers can electronically verify your eligibility, so you won't run into interference if you need to see a doctor or pick up a prescription.

The Medicare hotline

With a little less than half of the Medicare staff furloughed, waiting times to speak with a "real person" have increased. So, while the hotline will remain available throughout the shutdown, it may take longer than usual.

Telehealth services

If you count on telehealth services to communicate with your medical providers, coverage has reverted to pre-pandemic rules. That means that only rural residents and those with specific health conditions, such as stroke or home dialysis, will likely qualify for the service.

A pandemic-era rule allowed Medicare patients to see doctors from home and expanded the number of providers available. That service expired on Oct. 31, and will remain expired unless Congress decides to include it in an upcoming spending bill. In the meantime, many of the 6.7 million Medicare recipients who used telehealth services last year will need to switch back to in-person visits with their providers.

If you have trouble getting out of the house or finding transportation to the doctor's office, you may want to contact Medicare to learn if your health condition(s) qualify you for continued coverage.

Affordable Care Act (ACA)

In the future, when people discuss the 2025 government shutdown, it will be easy to identify the reason for it. In short, it's a fight over enhanced subsidies to help low- and middle-income Americans pay for health insurance through the ACA (Obamacare). The subsidies are set to expire at the end of 2025, and while a portion of Congress supports allowing the subsidies to go away, the other side is fighting to keep those subsidies for working-class families.

While it's easy to think of the ACA only in terms of how it helps people pay for Obamacare, it has significantly affected Medicare. According to the Center for Medical Advocacy, here are a few ways the ACA saves seniors and disabled Americans thousands of dollars a year:

• Closing the Medicare drug coverage gap.
• Providing free preventative services for people with Medicare.
• Restructuring how much insurers can charge for Medicare Advantage.
• Implementing various cost-containment reforms that strengthen the Medicare trust fund.
• Introducing Accountable Care Organizations (ACOs), a part of the Medicare program that encourages medical providers to work together to coordinate care and provide savings.

The question becomes: What will happen to out-of-pocket costs for Medicare recipients if millions of Americans are forced off the ACA and the program loses its power as a negotiating tool? Will they increasingly be forced to dip into their emergency savings or retirement plan?

You've spent years devising an income strategy for retirement. While the government will undoubtedly open again, the decisions made once it reopens will affect any budget you've come up with in the meantime. Whether it will be a benefit to you is yet to be seen.

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