Yes, it is a rule just started Oct 1, and hospitals are now having to deal with this. Basically, there is guidelines established by a company called Milliman. The hospital reviews the patient’s signs and symptoms with Milliman guidelines, and the patient gets categorized as observation or inpatient. If you are in the hospital less than 2 midnights, you can also be categorized as observation. Observation status means more out of pocket expense for the patient. Medicare pays less, and you do not qualify for nursing home or rehab placement. This is one of the subtle ways funding for Medicare has decreased. If you hospital participates in Medicare- as they all do- then they have to apply the same rules to private pay health insurance. Thats right- the private BCBS policy follows Medicare rules. Any law pertaining to Medicare also applies to everyone else.
I really appreciate you taking the time to explain this. My poor mother is now planning a future heist of her body from the hospital.