Appealing a denial of Part A coverage from a change in status during a hospital stay
As a result of a court order, you have appeal rights when a hospital changes your status from “inpatient” to “outpatient getting observation services” if you meet certain criteria.
Changing your hospital status from “inpatient” to “outpatient getting observation services” matters because:
- This change in status will affect your bill.
- The change means that if you need to go to a skilled nursing facility (SNF) within 30 days after you leave the hospital, Medicare won’t cover your skilled nursing facility stay.
You can ask for a fast appeal while you’re still in the hospital if you were admitted to the hospital as an inpatient and the hospital changed your status to “outpatient getting observation services.” Learn how to file this type of appeal.
You can appeal past hospital stays back to January 2009
Starting January 1, 2025: If you’re a Medicare patient who was admitted to the hospital as an inpatient, and the hospital changed your status to “outpatient getting observation services,” you may be able to appeal the denial of Part A (Hospital Insurance) inpatient coverage that came from the change in your status.
If your appeal is approved, Part A may cover the hospital and services (if appealed) you got. In certain situations, you may also get a refund for payments you or a family member made for services that weren’t covered. Learn more about situations where you might get a refund.
What happens if the appeal is decided in my favor?
You’ll be notified if we determine that your hospital stay met the coverage requirements for a Part A (Hospital Insurance) inpatient hospital stay. The hospital will also be notified of the decision. The hospital may choose to submit a Part A claim to Medicare for payment.
- If the hospital submits a Part A claim: You (or the company that paid the hospital) will get a refund of any payments for the outpatient services (including any coinsurance and deductibles they collected). You’ll still have to pay your Part A hospital inpatient coinsurance and/or deductible (if you have one).
- If the hospital doesn’t submit a Part A claim:
- If you had Medicare Part B (Medical Insurance) when you were hospitalized for the services in the appeal, the hospital may decide not to submit a Part A claim. In that case, the hospital may keep the payment it collected for the outpatient services, and won’t refund any payments, including your coinsurance and/or deductible (if you had one). You won’t need to pay anything else to the hospital.
- If you didn’t have Medicare Part B when you were hospitalized for the services in the appeal, the hospital must refund any payments collected from you (or the company that paid them). In this situation the hospital must refund your payments, even if they don’t submit a Part A claim.
- If you included skilled nursing facility (SNF) services in your appeal: If we decide some or all of the services you appealed are covered, we’ll notify the SNF that they must refund payments they collected from you or your family member for the covered services. You should get a refund from the SNF within 60 days of the skilled nursing facility getting the decision.
What happens if the appeal isn’t decided in my favor?
You’ll be notified if we determine that your hospital services didn’t meet the coverage requirements for a Part A inpatient hospital stay. You’ll be able to file a second level appeal with the Qualified Independent Contractor. Your decision letter will provide detailed information about how to file a second level appeal.