CMS Releases Final Medicare Outpatient Observation Notice

January 3, 2017 LeadingAge DC Executive Director

The Centers for Medicare &Medicaid Services (CMS) released the finalized Medicare Outpatient Observation Notice (MOON). Beginning March 8, hospitals and critical access hospitals must provide the standard notice to all Medicare beneficiaries who receive outpatient observation services for more than 24 hours.
The notice, required by the Notice of Observation Treatment and Implication for Care Eligibility (NOTICE) Act, informs beneficiaries that they are an outpatient receiving observation services, not an inpatient, and shares the associated implications for cost-sharing and eligibility for Medicare coverage of skilled nursing facility services.
CMS issued the final policies for implementing the NOTICE Act in August with the inpatient prospective payment system final rule, but delayed implementation until 90 days after the updated MOON was posted on its website. More information and a downloadable copy of the MOON are available on the CMS website.