Observation status is when a hospital places you under outpatient observation rather than admitting you as an inpatient. Observation status is covered under Part B (outpatient), not Part A (inpatient). This matters because skilled nursing facility coverage requires a 3-day inpatient hospital stay.
Key Points
- Observation status: outpatient status, covered under Part B
- Not covered under Part A (inpatient)
- SNF coverage requires 3-day inpatient stay — observation days do not count
- Medicare Supplement covers Part B coinsurance for observation status
- An independent agent can help you understand observation status