The Latest Big Lie about Medicare Says Obamacare Won't Cover Seniors If Observed in the Hospital

There is a new, big lie out on the Internet that claims you are not covered under Medicare if "only" observed instead of being admitted. Part of the lie is that this is a change to Medicare caused by the Patient Protection and Affordable Care Act, usually referred to as Obamacare. All variations of this article are totally inaccurate and do great harm to people on Medicare. This should be particularly be removed by Gatehouse Media, a formerly bankrupt group of bad newspapers and websites designed to get advertsing hits in the Northeast.

 

Specifically

 

1. If you are being observed in an acute care hospital instead of being admitted, you are covered by Part B medical insurance instead of Part A hospital insurance. You are covered by Medicare either way. In fact, it is financially to your advantage if you are observed overnight and have to pay your own co-pay or deductible. One night observations are the usual case by far. (Furthermore, over 95% of us have gap insurance of some sort anyways and the co-pays and deductibles are also covered in whatever way your gap insurance specifies. This whole Internet lie -- apparently started by the far left wing Medicare Rights group for some odd reason -- is irrelevant to over 95% of us.)
2. It is irrelevant to your hospital's billing department, how many nights you are there. You are covered. If being observed, the number of days of your coverage -- subject to Part B's 20% co-pay rule -- is unlimited. If admitted, you have coverage under Part A up until about 300 days in a lifetime. (Most likely if you are observed for more than a few nights, which is very rare, the immeditate financial advantage reverses and it is better to be under Part A. But you do have coverage. And it actually may be to your advantage long term to be observed even if your co-pay is higher, so as not to eat in to your lifetime Part A limit.)
3. The issue with a.) number of nights and b.) admitted status DOES affect whether Medicare will pay for rehabilitation in a skilled nursing facility subsequent to your leaving the acute care hospital. You must be BOTH a.) in the hospital 3 nights and b.) admitted in order to have rehabilitative care covered. Why these nuts are making such a big deal of admitted status is beyond me. Both rules affect rehab; your rehab will not be covered -- even if admitted -- if you are admitted only for 2 days. (This rule was written because of  people beating the system and getting nursing home care paid for when no rehab is called for. Medicare won't pay for custodial care, which is another issue.)
4. None of this has anything to do with Obamacare.