http://www.dailyherald.com/article/20101113/news/711149939/Excerpt:
Dressler said hospitals receive less reimbursement from Medicare for observation patients, which helps keep them under the radar from the Recovery Audit Contractors, which review inpatient claims. Merryweather, however, says fear of audits isn't a factor, because misclassifying a patient can lead to not getting any Medicare payment at all.
Regardless of who's to blame, legislators recognize the problem this is causing for hospital patients nationwide. On July 29, Democratic U.S. Rep. Joe Courtney of Connecticut introduced House Bill 5950, the “Improving Access to Medicare Coverage Act of 2010.”
Now in committee, the bill would require hospitals to classify a patient as “inpatient” if the person is hospitalized for more than 24 hours. It would be retroactive to January 2010.
U.S. Rep. Jan Schakowsky, a recently re-elected Democrat from Evanston, is among the bill's supporters.
“People don't really understand, in the midst of hospitalization, what this is. If I'm not really admitted, what am I doing in the hospital?” Schakowsky said. “I totally understand wanting to save money on Medicare expenditures but this is not the way to do it. You don't want doctors to overtreat people and overcharge Medicare. On the other hand, we can't just leave people, especially older people, in a situation like this.”