Fact check: How do government shutdowns affect Social Security and Medicare payments?

1. Why recipients keep getting paid even when Washington shutters offices

Federal guidance and agency statements consistently explain that Social Security and Supplemental Security Income (SSI) payments continue during a shutdown because those disbursements are treated as mandatory or are funded through prior appropriations and carryover mechanisms. The Social Security Administration (SSA) explicitly confirmed there would be no change in payment dates for current beneficiaries and encouraged online account use for service continuity ^{[1] [4]}. News summaries repeated that cheques still move out during shutdowns, though front-line office functions — like issuing new Social Security cards and some in-person verifications — may be curtailed ^{[5] [3]}. These distinctions explain why bank deposits and mailed checks continue even when public-facing services slow.

2. Where beneficiaries might see disruption: office services and new actions

While payments continue, certain SSA activities pause, particularly tasks that require nonessential staff or new resource outlays during a lapse in appropriations. Sources documented likely impacts such as delays in issuing new Social Security cards, limited capacity at local offices, and slower processing for benefit applications or verifications that require in-person review ^{[5] [3]}. The SSA advised beneficiaries to use mySocialSecurity accounts online for many needs, signaling that digital self-service mitigates but does not eliminate service shortfalls. These operational limitations matter most for people initiating benefits, changing key information, or needing replacement documents.

3. Medicare’s mixed picture: most claims paid, but exceptions remain

Centers for Medicare & Medicaid Services (CMS) communications in October 2025 show a two-step evolution: an initial pause on some Medicare Physician Fee Schedule and related payments was issued then largely reversed for most claims, but exceptions persisted for payments tied to expired legislative flexibilities, notably certain telehealth claims that CMS could not confirm as behavioral health-related ^{[6] [2]}. Medical trade press and state medical associations reported that CMS directed Medicare Administrative Contractors to resume processing the bulk of claims for services on or after October 1, 2025, while maintaining targeted holds where statutory authority lapsed ^{[7] [2]}. This produced operational confusion for providers but protected routine beneficiary access to covered services.

4. What the CMS reversals mean for providers and patients right now

The CMS guidance to lift most claims holds restored timely payments to clinicians and suppliers for the majority of services, reducing immediate cash-flow strain on providers billing Medicare; however, telehealth billing for services outside behavioral health remains subject to scrutiny or nonpayment during the funding lapse, per state medical association notices ^[7]. That exception reflects the narrow scope of emergency telehealth flexibilities that Congress authorized previously; without fresh statutory authority, CMS says it cannot continue paying beyond its authority. Patients receiving telehealth services might therefore face uncertainty about provider participation or future billing disputes.

5. Timeline and recent source convergence: October 2025 clarifications

The record shows consistent messaging through October 2025: SSA published statements early in the month affirming uninterrupted benefits ^{[1] [8]}, and later local and national reporting reiterated scheduled November/December payment dates ^[4]. CMS issued updates mid- to late-October refining earlier guidance—initial hold notices were followed by instructions to resume most payments, with narrow exceptions flagged for telehealth flexibilities ^{[6] [2]}. The progression demonstrates agencies responding to operational realities and legal constraints as the shutdown unfolded in October 2025 ^{[6] [4]}.

6. Where the public discussion leaves out important financial mechanics

Agency statements emphasize continuity of payments but often omit granular fiscal mechanics: which accounts and appropriations fund ongoing benefits, and how long “carryover” funding will suffice. Reporting notes Medicare had carryover funds through the first quarter of FY26, supporting payments in the near term, but did not specify longer-term sustainability if a shutdown were protracted ^[3]. Likewise, SSA advised online alternatives but provided limited detail on backlog-management plans for delayed verifications or new claims, leaving beneficiaries uncertain about timeline for restored in-person services ^{[5] [1]}.

7. Bottom line for beneficiaries, clinicians, and policymakers

Beneficiaries should expect on-time Social Security and most Medicare-related payments during the October 2025 shutdown, while preparing for potential delays in office services and exceptions for certain Medicare claims—especially non-behavioral telehealth—where statutory authority lapsed ^{[1] [7]}. Clinicians should monitor CMS contractor guidance for claim adjudication changes and document service types carefully. Policymakers face a narrow window to address telehealth statutory gaps and clarify longer-term funding mechanisms to avoid future payment uncertainty if appropriations stalls continue ^{[2] [3]}.