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Updates to Recent Online Medicaid Portal Freeze

Update to Memorandum for Heads of Executive Departments and Agencies

On January 27, 2025, the Office of Management & Budget (OMB) within the White House issued a Memorandum for Heads of Executive Departments and Agencies (the “Memo”) on how to implement a series of executive orders that were signed upon the new administration taking office.

The Memo ordered federal agencies to conduct a comprehensive assessment of all Federal financial assistance programs to determine if they are inconsistent with recently signed Executive Orders; and to “temporarily pause” disbursement of all Federal financial assistance.

On January 28, 2025, Medicaid offices in every state and jurisdiction reported the federal funding disbursement portal was taken offline.

As of January 29, 2025, the Medicaid portals reported back online and resumed disbursement operations. OMB has since clarified that mandatory programs like Medicaid and SNAP will continue without pause. Furthermore, OMB has rescinded the Memo as of January 29, 2025.

Therapy Brands Perspective

Although we anticipate that funds will continue flowing to Medicaid programs for the time being, we recognize that many programs, including those funded by Medicaid, may face potential conflicts with executive orders (EOs). As a result, these programs, which our customers rely upon, are at high risk of defunding.

Until the Senate confirms a Secretary for the U.S. Department of Health & Human Services, we do not expect major changes to occur.

With the new administration now in office, the healthcare landscape is poised for rapid changes and evolving regulations. As policies shift and new guidelines are introduced, Therapy Brands remains committed to closely monitoring these developments to ensure our customers stay informed and compliant. We understand the importance of timely updates and actionable insights, and we will continue to provide comprehensive resources and communications to help our customers navigate the evolving environment with confidence and clarity. Our dedication to supporting healthcare providers remains unwavering as we adapt to the changes ahead.

Please continue to check back here for updated insights and information as they evolve.

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