As of October 8, 2025, the federal government has officially entered a shutdown. While Medicaid funding itself is considered mandatory and continues to flow, the shutdown is already creating operational slowdowns, particularly in how states process long-term care (LTC) Medicaid applications.
For professionals working with seniors and their families, these delays can have real consequences for care transitions, asset protection strategies, and client expectations.
Read More: Common Pitfalls in Long-Term Care Planning and How You Can Help Clients Avoid Them
Medicaid Funding vs. Function
The good news: current Medicaid beneficiaries remain covered, and states continue to receive federal matching payments. The Centers for Medicare & Medicaid Services (CMS) and the Department of Health and Human Services (HHS) are maintaining essential operations to keep existing programs running.
The challenge: a shutdown limits discretionary administrative work, and with up to 40% of HHS staff furloughed, state and federal coordination has slowed significantly. That means:
- New LTC Medicaid applications are taking longer to process.
- Eligibility assessments and appeals are facing delays.
- Communication from local Medicaid offices is slower.
- Approvals for nursing home admissions or home-care services are being pushed back.
While benefits remain protected, the administrative bottleneck is already impacting client timelines, especially for those in the middle of a care transition.
Why These Delays Matter for Advisors
These slowdowns can affect not just clients’ access to care but also your planning conversations around Medicaid spend-downs and crisis planning. Families waiting for approval may experience:
- Unexpected private-pay costs at nursing homes
- Delayed discharges from hospitals or rehab facilities
- Emotional and financial strain as applications linger in review
As an advisor, this is an opportunity to reinforce your value as a trusted guide, helping clients stay organized, anticipate challenges, and make informed financial decisions while waiting for approvals.
Proactive Steps to Take Now
- Encourage clients to submit complete documentation. Missing forms or errors can add weeks to an already delayed process.
- Coordinate with care facilities. Ensure they understand the situation and can adjust payment expectations as needed.
- Monitor key deadlines. Flag urgent cases involving hospital discharges or care transitions for potential prioritization.
- Manage expectations. Prepare clients for slower communication and longer approval times than usual.
Read More: How to Initiate Meaningful Conversations Around LTC Planning
Helping Clients Stay Financially Secure
While this situation is temporary, it underscores the importance of Medicaid planning and LTC preparedness. Whether you’re working with pre-planning clients or crisis cases, encouraging clients to have a plan in place can minimize stress when delays occur.
By guiding clients through these uncertain periods with confidence and clear strategy, you’re helping them manage a temporary disruption while also protecting their long-term financial stability and peace of mind.