Briefing on Medicare’s Observation Status

I received an email from AARP’s Public Policy Institute about the December 6, 2013 briefing on Medicare Observation Status.  The briefing, Am I in the Hospital or Not? Why Hospitals are ‘Observing’–Not Admitting–Patients, is jointly sponsored by AARP’s Public Policy Institute and the Alliance for Health Care Reform. The registration page offers the following description:

Hospitals are feeling increased pressure from Medicare to classify patients the “right” way or risk losing reimbursements. In turn, patients face higher bills for services they receive in the hospital, and also the possibility of not qualifying for Medicare-covered nursing home care after their hospital stay.

One reason for the increase in “observation status” is to better hospitals’ chances of getting payment from Medicare. (Medicare can refuse to pay hospitals when it deems a hospital inpatient stay as unnecessary, and hospitals say there has been a lot of uncertainty in the process.) In addition, starting in 2012, the Patient Protection and Affordable Care Act imposed penalties for hospitals with high rates of readmission. Hospitals can avoid the penalty if the patient was not officially admitted during his first visit.

How prevalent is observation status and how rapidly is it increasing? What challenges are hospitals facing to comply with state law and federal rules regarding hospital admissions? What administrative solutions are being tried by Medicare? What is the “two-midnight” rule and how does it work? What does it all mean for out-of-pocket costs to beneficiaries and reimbursements for hospitals?

The briefing runs from 12:15-2:00 p.m. in the Dirksen Senate Office Building, Room G50. To register, click here.