Be Aware of Observation Care

Posted on 5-23-2019

Potential Medicare Problem

Are You Covered by Medicare?  If you, or someone you know is covered by Medicare, Craig Siminski – of CMS Retirement Income Planning, LLC, has some important information for your consideration:


Generally, no one wants to be admitted to a hospital, but for Medicare beneficiaries the distinction between inpatient and outpatient treatment can be confusing and potentially expensive.

The key issue is observation care (also called observation status), during which a patient spends time being evaluated in a hospital — and may be in a hospital room with hospital services — but is not admitted as an inpatient.

Hospitals keep patients under outpatient observation to help control costs, but the growing use of observation care has raised concerns for both patients and providers.

To help clarify patient status and Medicare reimbursement, the Centers for Medicare & Medicaid Services implemented a two-midnights policy that directs hospitals to admit patients if they are expected to be under care for at least two midnights.

Hospitals must provide detailed oral and written notice to any patient who receives outpatient observation services for more than…

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Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 20 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.

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