Has anyone heard about this "Observation Status?" I hadn't, but after reading the content below, I agree this loophole should not exist. My dear friend, who is currently a law student at DuPaul specializing in Elder Law, sent this to me. I'm so glad she did and I urge you to check this out & take a stand!
When is a hospital stay not a hospital stay? When it's observation status!
Tell CMS to change its policies about hospital stays!Increasingly, Medicare beneficiaries who stay at the hospital for one or more days are placed on observation (outpatient) status. This may feel like a hospital stay and look like a hospital stay, but it is not because, under observation status, the individual is not officially admitted as an inpatient. Why does the difference between observation status and inpatient status matter?