On July 27, 2015, the Senate approved H.R. 876, the Notice of Observation Treatment and Implication for Care Eligibility Act, clearing the measure for the President. H.R. 876 would require hospitals to provide written and oral notification to Medicare beneficiaries receiving observation status for more than 24 hours, rather than admitted as inpatients. The notice must include an explanation of the implications of observation status for beneficiary cost-sharing obligations and subsequent eligibility for skilled nursing facility services. The notice must be written using plain language and made available in appropriate languages. The notice must be provided no later than 36 hours after the beneficiary begins receiving the services (or, if sooner, upon release), and it must be signed by the beneficiary or a person acting on the beneficiary's behalf (or signed by a hospital staff member if the beneficiary or his/her representative refuses to sign).
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