Dr. Vin Gupta, NBC News medical analyst and Manatt, Phelps & Phillips Health Innovation managing director, joins CNBC's 'Money Mover's to discuss how the government shutdown is impacting access to healthcare.

Washington

The government shutdown has led to widespread disruptions in healthcare services across the United States, with a disproportionate impact on states that supported the current president in the last election. Telehealth services for seniors and Medicaid beneficiaries are being shuttered, and federally qualified health centers serving 34 million people have lost funding. Nutrition programs like WIC and SNAP are also facing uncertainty, making it harder for families to access essential benefits. An $8 billion fund supporting hospitals that care for Medicaid populations is primarily utilized by red states, intensifying the shutdown's effects in those areas. 

While Medicare and Medicaid coverage remain legally intact, the expiration of COVID-era Affordable Care Act tax credits could significantly raise premiums for millions, especially those with lower incomes. Healthcare companies and digital health providers that depend on federal reimbursements are also affected, highlighting the shutdown's broad and immediate consequences for both individuals and the healthcare industry.

Government shutdown impacting healthcare in red states hardest

Welcome back to Money Movers. The government shutdown now stretching into its ninth day after the Senate once again rejected dueling Republican and Democratic funding proposals. Much of the talks are centering around health care subsidies as COVID era enhanced Affordable Care Act tax credits get set to expire Jan 1. Joining us now is NBC News Medical Analyst, Managing Director of Health Innovation at Minot, Dr. Vin Gupta. It's great to have you, Dr. Gupta back. You know, one thing I wanted to talk to you about, which we were going back and forth on, is the impact that it's having already, how people are feeling the effect of the shutdown. Tell us about it. Yes, Sarah, Carl, good morning. Great to be here. It's happening right now. So the impacts to the shutdown are broad based. They're happening now. And frankly, they're disproportionately impacting states that supported the president in the most recent presidential election. Let's look at a few facts here. Thirty percent of health systems, Sarah, across the country have already announced that they're shuttering telehealth services for seniors, those that are on Medicare, beneficiaries on Medicaid. You cannot currently, at least 30 percent in climbing, you cannot currently access reimbursable telehealth services for needed primary care or for an acute condition. That's a big deal. Federally qualified health centers, 34 million people get their basic primary care access through federally qualified health centers and they no longer have funding as of the shutdown, the actual date of the shutdown. And then hospital at home programs. I'm in an ICU right now here in the West Coast. Often we like to send our patients back to home as quickly as possible for post-acute care. Hospital at home programs have gotten a lot more popular, especially for Medicare beneficiaries. That was shuttered. So the impacts are not just going to happen November 1st or if we don't extend the ACA tax credits. They are happening right now. There's also the nutrition element of this too, doctor. We're trying to find out whether WIC can be funded by some additional, some supplemental revenue. But a nice piece on the wire today, looking at the families that benefit from that kind of program, the infant nutrition, the breastfeeding support. Once those families get confused about the accessibility of the benefit, they might stop going and it's kind of hard to win that trust back. Carl, 100%, WIC, take SNAP as an example, you know, focused on grocery subsidies for people that need them. It's really hard to actually access these benefits. If you talk to people that are on SNAP benefits, it's hard to actually figure out what is covered when you walk through a grocery store and what's not. How do you actually sign up for benefits? And so exactly to your point, once you lose that trust, you take it away. It's a one-way door. It's hard to get it back. Can people rely on these things? It's hard to know that. And I should also just emphasize, you know, when it comes to, say, what happened to Medicaid as of the shutdown, there is a fund that supports hospitals across the country that care for uncompensated cost of care that usually accrue when you're caring for a Medicaid population. It's an $8 billion fund. Where it is seven of the 10 largest recipients at the state level of that fund are states, again, that are red states or voted for the president. And so this is impacting, you know, whether you're a Republican or a Democrat, this is impacting both sides of the aisle. And the impacts are now, whether it's on nutrition parl, whether it's on access to healthcare. But we should say that, you know, you are still covered by Medicare and Medicaid. I mean, that is by law. That's not being disrupted. That's not impacted. Right. But there is a big deadline coming up for the Affordable Care Act open enrollment November 1st, if they can't get it open by then. That's right. That's right. And, you know, what's going to happen here, Sarah, is the question here for your viewers is, will they all the 2021 tax credits that made getting health insurance through these Affordable Care Act marketplaces much more affordable? Will they be extended? And if they're not, let's take an individual that earns thirty thousand dollars a year. They pay about three hundred dollars in health care premiums in total because those tax credits made it cheaper, really reduce their premiums to one percent of their income. If those go away, that same individual is paying sixteen hundred dollars, six percent of their take home. That's an incredible increase. And we expect twenty four million people in reliance on these tax credits. They've signed up or 14 million additional have signed up since twenty twenty one because of these tax credits. Imagine what happens to access to care, affordability of care if these go away. Again, it's an impact. Everybody not just people of a certain political ideology. What about the companies? You know, we cover the health care companies. Are they, you know, those with more exposure, for instance, to Medicare and Medicaid, are they going to be impacted here? Absolutely. You know, companies have large health care systems, 20 percent of all health systems across the country, of all U.S. health care dollars or Medicaid dollars. And so this is going to impact traditional health care systems. This is going to impact digital health companies that rely on Medicare reimbursements into entities that disproportionately care for Medicaid beneficiaries. This will impact everybody in some fashion. All right. Thank you very much for the sort of reality check on all of this. Dr. Ben Gupta, it's good to see you.

Israeli Prime Minister Benjamin Netanyahu announced that his government has approved a plan to release all remaining hostages in Gaza. The move is part of President Trump’s peace plan and could bring an end to the two-year conflict in the region.

Tel Aviv-Yafo

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Alexandria

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Middle East Conflict

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Stockholm

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Kyiv

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Jerusalem

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Pyongyang

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New York

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Los Angeles International Airport

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Cairo

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Los Angeles

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Sharm El-Sheikh

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Mexico City

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Chicago

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Global Tariffs

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Riyadh

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Santa Clara

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Breakdown