The Senior Citizens League (TSCL) Monthly Washington Update for the end of September 2025
As this is written, the federal government shutdown is upon us. Most Washington observers are pessimistic that it will end anytime soon, but things could change quickly if one side or the other feels they are in trouble with voters.
We discuss the shutdown below, as well as a new tax break for some seniors, the President’s idea for lower drug prices, Medicare open enrollment season, and certain services that are no longer available to Medicare users.
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New Temporary Tax Deduction for Some Seniors
We have written in the last couple of months about the “One Big Beautiful Bill (OBBB) signed into law by the President this summer, and about the cuts it makes to Medicaid that millions of seniors rely on for their health care. However, there is some good news for other seniors that comes from the OBBB.
A new bonus tax deduction is available for some seniors beginning with the 2025 tax year. This bonus allows taxpayers aged 65 and older to claim an additional deduction — up to $6,000 for singles, or $12,000 for married couples when both spouses qualify.
Key points:
- You must be 65 or older by December 31, 2025.
- The bonus amount tops out at $6,000 for individuals and $12,000 for married couples when both spouses are 65 and older.
- This deduction phases out above a certain income level: Modified Adjusted Gross Income (MAGI) of $75,000 for singles and $150,000 for those married, filing jointly. It phases out completely for MAGI above $175,000 and $250,000, respectively.
- The IRS says you must “include the Social Security Number of the qualifying individual(s) on the return, and file jointly if married, to claim the deduction.”
Because the deduction applies regardless of whether you itemize or take the standard deduction, it can be beneficial for those with sufficient deductible expenses who want to itemize but also want to reduce their taxable income further.
Keep in mind: This new tax break is temporary, set to be available from 2025 through 2028 unless Congress renews it.
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President Trump Reveals New Plan to Lower Drug Costs
The Trump administration on Tuesday announced the creation of TrumpRx, a direct-to-consumer website where customers can buy drugs directly. The website is part of a broader administrative initiative to implement a most-favored-nation pricing model for prescription drugs.
The White House hopes to make the TrumpRx website available in early 2026.
Although many details are still sparse, the Wall Street Journal reports that the deal is likely to have a minimal impact on what most Americans pay at the pharmacy counter, according to experts. More than 300 million people in the U.S. are enrolled in health plans through their employers or government programs, most of whom will likely save more money using their insurance.
Trump’s strategy to lower prescription drug prices will be put to the test as drugmakers must now commit to the terms of his “Most Favored Nation” pricing plan or face unspecified actions from the federal government. Trump gave drugmakers until Sept. 29 to respond to his Executive Order “Reducing Drug Prices for Americans and Taxpayers.” The order calls on manufacturers to provide preferential pricing to all Medicaid patients, requires them not to offer better prices to other developed countries on new drugs, creates a mechanism for direct sales to consumers, and utilizes trade policy to raise prices internationally, thereby reinvesting revenue in lowering American prices.
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Why the Government Shutdown?
As in the past, this federal government shutdown is over funding a policy that is important to the party voting against government funding, in this case, the Democrats. However, there is a key difference this time: the policy in question has an immediate and direct impact on some voters. Past shutdowns were triggered by issues such as border wall funding and the defunding of the Affordable Care Act (ACA). There were no direct impacts on voters by leaving the status quo of those policies unchanged.
The central Democratic demand is about health care: They want Republicans to extend a temporary Biden-era program that has lowered health insurance costs for more than 20 million Americans buying coverage through the Affordable Care Act. And they want Republicans to undo at least some of the dramatic Medicaid cuts that the GOP enacted over the summer, as part of Donald Trump’s “One Big Beautiful Bill.”
The Democrats offered a bill that would have funded the government until Oct. 31. It would have also permanently extended the extra Affordable Care Act subsidies, undone the Medicaid cuts in President Trump’s tax bill, and made it more difficult for the White House to withhold funding appropriated by Congress. The Senate held a floor vote on the Democrats’ bill last Tuesday afternoon, but it failed because no Republicans supported it.
Republicans, who control both houses of Congress and the White House, proposed passing a “clean” continuing resolution, which would have extended government funding until Nov. 21. Although the Republicans hold the majority in the Senate, Senate rules about a filibuster mean that more than a simple majority is needed to pass this type of legislation. The Republican measure did not receive the 60-vote threshold required to end a filibuster and thus pass the Senate.
Senate Majority Leader John Thune (R-S.D.) said Republicans would consider extending the ACA credits, but only after reopening the government. No Republicans voted in support of enhanced subsidies in the past, and even those who are open to extending the credits say they want to do so temporarily. Republicans also want to impose income caps on the subsidies, and there are concerns about government-subsidized plans covering abortion.
Democrats are betting that the public will pressure Republicans to extend the ACA credits when they see that premiums will more than double on average if the credits are allowed to expire. Notices of those higher premiums started going out a few days ago in some states ahead of the Nov. 1 start of marketplace enrollment for 2026.
However, it’s quite a gamble for a pro-government party that typically avoids shutdowns. A lot will depend on the messaging war.
Republicans say they are confident that they can secure enough Democratic votes to pass their bill, which would temporarily fund the government without the policies that Democrats are demanding.
So far, Trump and Republican leaders have refused to negotiate, and now they are saying that Democrats want to fund health care for “illegal aliens.”
However, individuals in the United States who are undocumented cannot obtain federally funded health insurance. They cannot enroll in Medicaid. They cannot get federally subsidized coverage through the Affordable Care Act’s online marketplaces.
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Medicare Open Enrollment Season Starts Soon
The 2026 Medicare Open Enrollment Season will run from October 15 to December 7 this year. TSCL strongly advises you not to wait until a few days before the end of the enrollment season to begin deciding on the plan you want next year. Unexpected problems could arise, and you need to make sure you don’t run out of time to enroll.
You should find out which plans are available in your area and:
- Compare plans in your area – Find out what they cost and the services they provide. Enter prescription drugs you take to get an estimate of your monthly and yearly costs for each plan.
- Use your “Medicare & You” handbook to find plans – they’re listed in the back.
- Talk to a trusted agent or broker – Check the rules they have to follow.
- Remember that the ads for Medicare plans that you see advertised are from companies hoping to sell you their plan, and the agents you talk to are salespeople.
To obtain help, contact your local State Health Insurance Assistance Program (SHIP) for free, personalized health insurance counseling. SHIPS aren’t connected to any insurance company or health plan. For more information, please call 877-839-2675 or visit https://www.shiphelp.org.
Then make sure the plan meets your needs:
- Check if the plan covers your prescriptions and includes the benefits you need.
- Ask your doctors and pharmacies if they’re in the plan’s network.
- Review costs, like monthly premiums, deductibles, and the estimate of your yearly costs for drugs you take.
- If you have other health insurance or drug coverage, talk to your benefits administrator or other insurance provider before you make any changes to your current coverage.
- If you live in another state for part of the year, check if the plan will cover you there.
For more information, visit Medicare.gov or call 1-800-633-4227.
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Telehealth, some Home Healthcare Options Not Available during Shutdown
Fortunately, Medicare, Medicaid, and Social Security payments are available during the government shutdown. However, some Medicare users may experience difficulties accessing certain Medicare services.
Two COVID-era programs that expanded access to healthcare expired on September 30, despite having largely bipartisan support. One provided greater flexibility around telehealth, and another allowed hospitals to continue providing high-level care at home.
Because Congress couldn’t reach an agreement on a budget for FY2026, it missed the deadline on extending COVID-era telehealth programs for Medicare beneficiaries. That means previous restrictions have been reinstated until lawmakers pass a budget measure, according to the Centers for Medicare & Medicaid Services (CMS).
Before the COVID-19 pandemic, there were tighter restrictions on who could get telehealth services covered by Medicare; for the most part, virtual healthcare appointments were reserved for beneficiaries living in rural areas or care facilities, or those working with certain types of providers.
While some of these changes were permanent, others continued to rely on temporary waivers to operate. That means that as long as Congress cannot reach an agreement on either a temporary or final budget for FY2026, the following services will no longer be available to Medicare recipients:
Patients can no longer receive telehealth from home unless they meet specific
Criteria: telehealth flexibility will again be limited to rural areas; audio-only visits will no longer be reimbursed for most services; and physical therapists, occupational therapists, speech-language pathologists, and audiologists will be excluded from telehealth reimbursement.
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