Medicare telehealth and hospital-at-home waivers lapse as government shuts down
When Congress failed to pass FY2026 funding and the federal government shut down on October 1, 2025, Medicare's pandemic-era telehealth flexibilities expired with it. Medicare telehealth coverage for most services was again limited to rural patients seen at approved originating sites instead of at home, audio-only coverage ended, and CMS's Acute Hospital Care at Home waiver, used by more than 400 facilities in 39 states, also lapsed. Behavioral health telehealth was largely protected by permanent law, and CMS said providers could hold telehealth claims while Congress acted. The spending bill that ended the shutdown in November restored the flexibilities through January 30, 2026, with retroactive payment for services delivered during the lapse.
Why it's notable: For six weeks, practices and hospital-at-home programs could not be sure Medicare would pay for virtual visits, which exposed how much U.S. telehealth still depends on short-term extensions.