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Medicare Outpatient Observation Notice Act

Decent Essays

Congress passed the Notice of Observation Treatment and Implication for Care Eligibility Act Notice Act in a unanimous vote on July 29, 2015. The President signed the bill on August 6, 2015.
The Federal Registers explains, The Notice Act, is an amendment to title XVIII of the Social Security Act, to add a new Medicare Condition of Participation (Cop) for hospitals and critical access hospitals (CAH)’s requiring them to provide written notice as well as an oral explanation of the written notice to patients who are entitled to Medicare and for those hospitals are billing Medicare (Public Law, 2015).
This notice which, is known as the Medicare Outpatient Observation Notice (MOON), has to be presented to the patients that …show more content…

The MOON is a “standardized written notice that clearly explains: the patient is an outpatient status receiving observation services and why they are in observation, the financial implications of being in an outpatient status and the signature of the patient or the person acting on the patient’s behalf” (Federal Registers, 2016). If the patient refuses to sign, the staff member who presents the MOON to the patient must verify the documents was given by signing their name, title, date and time to the form. (See, Appendix A). A proposed rule to implement the provisions of the Notice Act was published on April 27, 2016 as part of the CY 2017 Inpatient Prospective Payment Systems for Acute Care Hospitals Proposed Rule (hereafter, Proposed Rule) …show more content…

The financial liability for the patient is daunting and may keep some from coming to the hospital for treatment and others leaving against medical advice (AMA).
CMS estimates, for hospitals they will issue 1.4 million MOON’s annually and the cost to the industry the will be about $23 million per year. According to Modern Healthcare, “CMS likely will not begin enforcing the MOON until 2017 because the federal government is still accepting public comments on an updated version of the MOON”. The final rule was effective February 21, 2017. Hospitals will have 90 calendar days to implement the MOON requirement after its effective date.
Previously, all hospitals, including The University of Alabama at Birmingham (UAB), were required to notify beneficiary of observation status only if the

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