Brown, Collins, Nelson, Capito Introduce Bill to End Arbitrary Medicare Policy that Leaves Seniors with Unfair Costs After Receiving Necessary Care

Press Release

Today, U.S. Sens. Sherrod Brown (D-OH), Susan Collins (R-ME), Bill Nelson (D-FL), and Shelley Moore Capito (R-W.Va.) introduced legislation to end a Medicare policy that causes seniors to be charged unknowingly with high, unfair costs after receiving needed post-acute medical care. Currently, a Medicare beneficiary must have an "inpatient" hospital stay of at least three days in order for Medicare to pay for post-hospitalization skilled nursing care. Patients that receive hospital care on "observation status" are left to pay for skilled nursing care, even if their hospitalization lasts longer than three days.

"The last thing seniors should worry about after being hospitalized is their Medicare coverage. But far too many seniors don't know if their hospitalizations are under observation status, only to find out after that Medicare won't cover their nursing home stays," said Brown. "This bipartisan bill would make sure seniors receive the care they need after hospitalization without additional costs so they can focus on their health and recovery instead of how they'll afford their care."

"As Chairman of the Senate Special Committee on Aging, encouraging action on issues important to seniors remains one of my top priorities," said Collins. "I'm proud to support legislation that helps protect seniors from the severe financial consequences many older Americans are currently incurring from the increased usage of observation stays. This bipartisan bill would deem time spent in observation status as inpatient care for the purpose of the Medicare three-day prior hospital stay requirement for skilled nursing care, which will help insulate older Americans from undue out-of-pocket costs and ensure that they get the care that they need."

"When seniors are taken to the hospital they shouldn't have to worry about which code the hospital uses to bill Medicare," said Nelson. "This legislation seeks to eliminate that concern by simplifying the billing process hospitals use when caring for our seniors."

"This important legislation will provide certainty to seniors who are in need of skilled nursing care and take away a source of significant financial worry for patients and their families," said Capito. "I am proud to join my colleagues to introduce this bipartisan legislation that will end confusion and help seniors access the care they need."