Partial government shutdown looms, threatens telehealth flexibilities

According to a CNBC report, the government is headed for a partial government shutdown. This would result in telehealth and hospital-at-home flexibilities expiring for a brief period, at a minimum.  

Last week, the House passed an appropriations package to fund HHS and other agencies through Sept. 30, 2026. The package includes a two-year extension for pandemic-era regulatory flexibilities that expanded telehealth access for Medicare beneficiaries and a five-year extension for the Acute Hospital Care at Home (AHCAH) waiver.

However, the package stalled in the Senate as Republicans and Democrats clashed over funding for the Department of Homeland Security. Several Senate Democrats vowed to vote against the appropriations package that included $64.4 billion for DHS, of which $10 billion was for Immigration and Customs Enforcement, according to the New York Times.

The Senate is still discussing the funding deal; however, even if the Senate votes on a revised package today, the House will only reconvene on Monday, preventing any package from being sent to President Donald Trump this weekend, CNBC reports. This means there will be a brief period where telehealth and hospital-at-home waivers will expire.

The flexibilities were last extended in November 2025 after a government shutdown cut off Medicare telehealth services for over a month. During this period, healthcare providers faced challenging decisions about telehealth operations. Though the extension of flexibilities offered a short reprieve, telehealth providers are once again navigating uncertain terrain.

The flexibilities were enacted during the COVID-19 pandemic, primarily to ease access to care for Medicare fee-for-service beneficiaries amid in-person care restrictions. They include waivers to eliminate geographic restrictions and expand originating sites for Medicare telehealth services to include rural areas, as well as broaden the types of healthcare practitioners who can offer telehealth. The waivers also reimburse federally qualified health centers and rural health centers for telehealth services and enable coverage for audio-only telehealth within the Medicare program.

The AHCAH waiver has also proved popular among healthcare providers looking to expand hospital capacity, while maintaining care access. As of Jan. 23, 2026, 373 healthcare organizations across 37 states had been approved for the waiver. The waiver's expiration means that facilities with approved waivers will be required to discharge or return all hospital-at-home patients to brick-and-mortar facilities.

"If Congress allows expiration of these critical services as part of another government shutdown, it will again cause major disruption, particularly as many patients, healthcare providers, and hospital systems have not fully recovered from the October shutdown," said Alexis Apple, vice president of public affairs at the American Telemedicine Association and deputy executive director of its advocacy arm, ATA Action, in an emailed statement.

"Our most vulnerable patients who have integrated these models into their ongoing care -- including millions of Medicare beneficiaries, individuals in rural areas, and those with mobility challenges -- would suddenly lose access to virtual care and hospital-at-home services that have become standard practice. We implore Congress to find a solution to extend these vital services before Friday's deadline, to ensure continued access to telehealth services for patients and providers without disruption," she continued.

Anuja Vaidya has covered the healthcare industry since 2012. She currently covers the virtual healthcare landscape, including telehealth, remote patient monitoring and digital therapeutics.