Are Medicaid, Medicare, And SNAP Really Going Away?

Are Medicaid, Medicare, And SNAP Really Going Away?

What Shutdown Scares Mean For California Families

Every time the federal government shuts down, people who rely on Medicaid, Medicare, SNAP, and disability get hit with a new wave of fear.

The rumors travel faster than the facts. Videos talk about “permanent shutdowns.”
Articles toss around words like “cut,” “pause,” or “defund” without context.

If you depend on Medicaid, Medicare, food stamps, and disability to survive, that noise feels like a direct threat. So let’s strip it down to what is actually happening and what people in California can do right now.

What Happens To Medicare, Medicaid, Social Security, And Disability During A Shutdown?

Medicare, Medicaid, Social Security, and SSI/SSDI are entitlement programs. That means they are written into law as mandatory spending, not optional. To truly “shut them down,” Congress would have to repeal or rewrite those laws. That is not what a government shutdown does.

During the October 2025 shutdown, Social Security confirmed that monthly checks would keep going out, even though some services could slow down because of furloughed staff.

For Medicare and Medicaid:
  • Benefits stay funded
  • Claims continue to be processed
  • The trouble shows up more in customer service and paperwork
    • Long hold times
    • Delays fixing mistakes
    • Slower processing of appeals and prior authorizations
So no, Medicare and Medicaid are not being shut off like a light switch. The fear is real, but the program structure is very different from a typical “budget item” that can simply be paused.

What Is Actually At Risk Right Now?

While core Medicare and Medicaid benefits remain in place, a few areas do carry real risk and confusion, especially for low-income families.

SNAP and food benefits

SNAP (food stamps) funding has been pulled into several fights lately. Courts and federal agencies have been going back and forth over how and when to send out full benefits during and after the shutdown, and what data states must share to keep receiving certain funds.

For Californians, CalFresh benefits have continued, but new applications and updates have seen delays in some counties. That is very different from a permanent shutdown, but for families trying to eat, delays still hurt.

Administrative crackdowns and audits

States are also ramping up Medicaid audits aimed at cutting down on “improper payments,” often by hiring outside firms to scan claims and flag “suspicious” patterns.
On paper, this is framed as fraud prevention. In real life, it can mean:
  • More denied claims
  • More requests for documents
  • More letters that confuse or scare patients
The target is supposed to be waste and abuse on the provider side, but the fallout is usually felt by patients who suddenly get bills they never expected.

Why Are People Suddenly Getting Medical Bills They Shouldn’t Owe?

Separate from shutdown talk, there is a growing problem no one explains clearly: billing errors and system glitches.

Advocates estimate that a large share of medical bills contain mistakes, from wrong codes to wrong insurance coordination. For people who have both Medicare and Medicaid, this is especially messy.

By law, patients in the Qualified Medicare Beneficiary (QMB) program should not be billed for Medicare cost sharing. Providers are not allowed to send them bills for covered services at all, and federal rules spell this out plainly.
Yet in practice:
  • Systems misclassify patients
  • Claims cross state lines or plan changes
  • Back-end “fixes” create new errors
The result is exactly what many patients are now seeing: sudden balances, co insurance bills for people who should owe nothing, and statements that make no sense.

What All Of This Means For Someone Living On Benefits

If you rely on Medicaid, Medicare, SNAP, disability, or a mix of all four, here is the honest picture:
  • Your benefits are not about to vanish overnight.
    The programs sit in a legal category that is very hard to erase. Shutdowns, budget fights, and audits do not equal “Medicare is gone” or “Medicaid is canceled.”
  • You can still get hit with billing and service headaches.
    That part is real. The system is under strain, and shutdowns make customer service slower, not faster.
  • Food benefits carry more short term risk than health coverage.
    SNAP and state administered programs feel shutdowns and new rules faster than Medicare checks do. That is especially true for new applications and recertifications.
  • Errors are common, not proof you actually owe the balance.
    A surprise bill often means the system is confused, not that you did something wrong.

Practical Steps To Protect Yourself Right Now

Here is what we tell our own clients who are scared they are about to lose everything:
  1. Log into every online portal you have
    • Medicare account
    • Medicaid or Medi Cal portal
    • Any Medicare Advantage plan
    • Main hospital or health system portals
  2. Look for new balances, odd charges, or sudden changes in coverage.
  3. Do not ignore a bill just because you “shouldn’t” owe it
    That balance might be wrong, but silence can turn mistakes into collections. Call the provider’s billing office and say something like: “I have Medicare and Medicaid. I’m not supposed to be billed for these costs. Please review this as a possible billing error and note my accounts.”
  4. Ask directly if you are marked as QMB or similar protection status
    If you are, repeat that you are protected from cost sharing on covered services and ask them to correct the claim.
  5. Keep every letter, bill, and explanation of benefits
    • Take photos or scan them
    • Write down dates, names, and details from phone calls
    • Ask for confirmation numbers when you speak with a plan or provider
  6. Appeal in writing when something looks off
    Many problems come down to missing documentation, not intentional denial. A written appeal forces the plan to look again and gives you a paper trail.
  7. Use local help, not just national hotlines. In California, you can:
    1. Contact county social services for CalFresh and Medi Cal questions
    2. Reach out to local legal aid or health advocates who specialize in Medicare and Medicaid disputes
  8. Talk with a local agent who understands Medicare 2025 changes A lot has shifted in Medicare payment rules and plan designs for 2025, including payment cuts to providers and plan adjustments that can affect how your care is billed.

For a plain English breakdown of what changed this year and how California seniors can save money instead of losing it, read our guide, “Medicare 2025 Changes That Could Save California Seniors Thousands” and use it as a reference when you review your coverage options.

How Our Agency Helps Clients In This Situation

As an insurance agency, we sit in the middle of all this confusion every day. Here is what we focus on for clients who are anxious about shutdowns and billing chaos:
  • Reviewing current Medicare plans and Medi-Cal status
  • Checking for conflicts between primary and secondary coverage
  • Flagging obvious billing errors before people pay out of fear
  • Helping clients prepare questions and documentation before they call Social Security, their plan, or a provider
  • Watching for California-specific policy changes that impact seniors and disabled adults
You should not have to decode shutdown headlines and billing codes by yourself.
If you are in California, rely on Medicare or Medicaid, and you are staring at a bill you do not understand, reach out. We would rather walk through it with you than see you skip care or go without food because of a confusing letter.
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