Groups welcome bill on Medicare observation stays

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"Current Medicare rules have left too many seniors trapped in a coverage gap resulting in huge out of pocket costs," NCPSSM President Max Richtman said in a statement.

"It makes no sense for seniors who’ve been in the hospital for extended periods to be denied coverage for skilled nursing care simply because the hospital listed their status as observational instead of inpatient."

A similar bill was introduced in the Senate by Sherrod Brown (D-Ohio). Previous attempts to change these rules have not moved past committee.