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Understanding Medicare: The Observation Status Glitch

Are Hospitals Required to Inform Patients About Medicare Observation Status?The federal government recently addressed a very expensive glitch in the systematic treatment of patients in hospitals throughout the country, which mandates that hospitals provide notice as to a patient’s observation status.

As we discussed in our blog post on May 31, 2013, “Status Does Matter: Observation v. Admission”, there is a big problem that many Medicare recipients have been facing: patients are footing the bill. The problem is that patients are footing the bill for rehabilitation services in a skilled nursing facility when they are under the impression that these services are covered by Medicare. At the heart of the problem is that the hospital never actually admitted the patient, and coded them with a status of “under observation.”

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The Importance of the CARE Act for Caregivers

Should the Hospital Inform a Family Caregiver About Discharge?Hospitals will soon be required to provide information to caregivers about their loved one’s discharge and instructions for administering medical aftercare.

Thanks to the Caregiver Advise, Record, Enable (CARE) Act, patients in New York hospitals will be allowed to designate a caregiver in their medical record. Once the caregiver is designated, the hospital is required to inform the caregiver when the patient is to be discharged and provide the caregiver with education and instruction of the medical tasks the caregiver will need to perform for the patient at home.

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