Maine Center for Elder Law Blog

Monday, August 24, 2015

On NOTICE: Obama Signs Law Requiring Hospitals to Warn of Costly Medicare Loophole

Many Medicare beneficiaries are being transferred to nursing homes only to find that because they were hospital outpatients all along, they must pick up the tab for the subsequent nursing home stay -- Medicare will pay none of it. 

The new law, the Notice of Observation Treatment and Implication for Care Eligibility (NOTICE) Act, does not eliminate the practice of placing patients under “observation” for extended periods, but it does require hospitals to notify patients who are under observation for more than 24 hours of their outpatient status within 36 hours, or upon discharge if that occurs sooner. Read more.

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