CMS updated its Medicare claims processing manual with new guidance on implementing the Medicare Outpatient Observation Notice, a standardized notice all hospitals must provide to Medicare patients receiving outpatient observation services.
As of March 8, hospitals must provide oral and written notice to Medicare beneficiaries within 36 hours after outpatient observation services are initiated. The notice clarifies that beneficiaries are not inpatients at the hospital and explains the associated implications for cost-sharing and eligibility for Medicare coverage of skilled nursing facility services, according to AHA News.
The new guidance addresses the following topics:
- How hospitals must deliver the notice and delivery timeframes
- Steps to take if a beneficiary refuses to sign the MOON or the notice must be delivered to a beneficiary’s representative
- Ensuring beneficiary comprehension
- What may be provided in the "additional information" field of the MOON
- Retention requirements for the MOON
- Intersection with state laws on observation notices
To learn more about MOON, click here.
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