You may have noticed that insurance coverage of hospital stays seems woefully inconsistent. That is because of the pesky difference between being an “admitted patient” versus being “on observation status.”
Previously, there was generally no explanation to patients about what differentiated admitted versus observation status. Most people only realized the difference when they received a bill in the mail of expenses not covered by insurance.
However, with the 08 December 2016 Medicare Outpatient Observation Notice (MOON), hospital patients who are Medicare recipients now must be informed of their “observation status,” orally and in writing with signature to confirm understanding.
This is a good step forward for clarifying health coverage for Medicare recipients.
You can read more here.