NSH CEO discusses impact of government shutdown, insurance subsidies
As the federal government shutdown enters its 14th day, North Shore Health is assuring patients that Medicare remains an essential service and reimbursements will continue. Medicaid, which is funded through the first quarter of 2026, will also remain supported.
Still, the shutdown is having ripple effects at the Grand Marais hospital.
Federal data sources used by the hospital—such as immunization statistics—are currently unavailable. In addition, North Shore Health CEO Kimber Wraalstad said applications to credential physicians for Medicare and Medicaid are moving “very slow.” Some temporary provisions for telehealth have also expired.
“That impacts some of the people around. For example, at North Shore Health, we have done some telehealth physical therapy,” ,” Wraalstad told WTIP. “Well, we can do that, but there’s no reimbursement for that, as those have expired.”
Congressional Democrats and Republicans have failed for weeks to agree on funding to reopen the government. Democrats are pressing Republicans to guarantee continued Affordable Care Act subsidies that lower or eliminate monthly premiums for people buying insurance through the federal marketplace.
The subsidies, expanded during the COVID-19 pandemic, are set to expire at the end of the year. Without an extension, some policyholders could see their insurance costs rise. Open enrollment for 2026 marketplace coverage begins Nov. 1.
“We have to figure out those insurance subsidies, because that impacts real people,” Wraalstad said. “And right now, people are making choices about what insurance they’re going to have for ’26, and they don’t have the ability to make those choices, because we don’t know what’s going to happen, and that’s problematic. And I really wish people get back to work.”
Republican House Speaker Mike Johnson predicted Monday the federal government shutdown may become the longest in history, saying he “won’t negotiate” with Democrats until they hit pause on their health care demands and reopen.
“We’re barreling toward one of the longest shutdowns in American history,” Johnson of Louisiana said.
WTIP spoke with Wraalstad about the shutdown, emergency services, the hospital’s bunkhouse, and her goals for the remainder of the year. The full interview is available in audio form below.
The Associated Press contributed to this report.
Josh Hinke October 14, 2025
