How the Government Shutdown Is Affecting Long-Term Care Medicaid Applications
As of October 8, 2025, the federal government has entered a shutdown. While Medicaid funding itself is considered mandatory, the shutdown is already creating operational slowdowns, especially in how states process long-term care (LTC) Medicaid applications.
Read More: Understanding Medicaid Eligibility for Long-Term Care: A Legal Overview for Elder Law Attorneys
Because Medicaid is a mandatory program, existing beneficiaries continue to receive coverage without interruption, and states continue to receive federal payments. CMS and HHS are also required to maintain essential operations, ensuring that ongoing enrollments and benefits remain intact.
Where LTC Medicaid Delays Are Happening
Even though coverage continues, the startup and administrative side of Medicaid is vulnerable during a shutdown. Reports indicate that many discretionary activities are on pause as federal staff are furloughed. Some estimates suggest up to 40% of HHS employees are affected. As a result:
- New LTC Medicaid applications are experiencing longer processing times.
- Eligibility assessments, appeals, and reviews are delayed.
- Communication from Medicaid offices is slower.
- Approvals for facility admissions, home-care authorizations, and transitions are being pushed back.
These delays don’t negate eligibility or benefits, but they can slow a client’s access to care.
If the shutdown is resolved quickly within days or a couple of weeks, many states may manage to catch up with backlogs. However, if the shutdown lingers, the delays could cascade, pushing approvals and reimbursements well into the winter months.
What Attorneys and Clients Should Do Now
- Help clients submit complete, clean documentation. Missing forms or errors will only increase review time.
- Track and note critical deadlines or service needs (e.g., hospital discharge dates) to support prioritization or expedited review.
- Stay regularly in contact with local Medicaid offices to monitor status or flag urgent cases.
- Adjust client expectations, and make sure they know approvals may take several weeks more than usual.
Read More: How to Protect Clients’ Assets Through Medicaid Planning
Medicaid benefits remain protected, and current enrollees will continue to receive coverage. However, new LTC Medicaid applications will be slower to process during the shutdown. Attorneys, clients, and care facilities should plan accordingly, anticipate delays, and advocate proactively for clients whose care depends on timely approval.
As Senior Content Specialist, Katie drafts and edits content across multiple platforms, including blogs, guides, emails, white papers, videos, brochures, website pages, and more. She conducts research and gathers up-to-date information to keep our clients well-informed.
