Observation Stays Coalition Submits Comments to OMB Regarding Medicare Outpatient Observation Notice

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The Observation Stays Coalition is a group of close to 30 national organizations representing a variety of health care professionals and advocates focused on addressing the issue of Medicare beneficiaries being denied access to skilled nursing center care due to observation stays. The Coalition (which Foundation grantee the Center for Medicare Advocacy is part of) submitted comments on the Medicare Outpatient Observation Notice (MOON) for OMB's consideration.

As an outpatient, Medicare beneficiaries are being denied access to a Medicare’ skilled nursing facility. Hospitals are increasingly classifying their patients as outpatients or as outpatients receiving observation services despite spending many days in hospital beds, receiving medical and nursing care, and food as they would an inpatient. Despite the similarities between outpatients and inpatients, outpatient’s who need follow up care in skilled nursing facilities do not qualify for Medicare coverage whereas beneficiaries classified as inpatients do qualify for Medicare coverage in SNF’s. This implication increases the out of pocket spending of beneficiaries classified as outpatients who require the same medical attention as beneficiaries classified as inpatients.

Learn more about hospital observation status in this Kaiser Health News article.