News Headlines Article

MedPAC: Gut Two-Midnight Rule; Punish Aggressive RACs
HealthLeaders Media

Five far-reaching recommendations approved by the Medicare Payment Advisory Commission (MedPAC) include eliminating the controversial “two-midnight rule” and penalizing recovery audit contractors who erroneously deny hospital claims.

Under the recommendations, hospitals would further be required to notify patients that they have been placed in outpatient “observation” status and that subsequent skilled nursing care won’t qualify for Medicare coverage.