Observation status is being used for Medicare patients in hospitals, making them outpatients rather than inpatients. There are dire financial consequences, including: facing higher hospital bills because of being covered by Part B rather than Part A, and losing Medicare coverage for skilled nursing care because of not having three hospital days as an inpatient. There has been a drastic increase of observation status patients in recent years. Many elderly Americans have faced bills in the tens of thousands of dollars. A great many find themselves in hospitals but not knowing that they are in the observation status category. A great many are in this category for many more than the two days most appropriate for this reduced Medicare coverage. Time to eliminate observation status.



