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Legislative Updates

Advocacy Group Files Lawsuit Against Government Challenging Observation Status

Posted on: 11/4/2011

The Center for Medicare Advocacy, Inc. (CMA) filed a class action lawsuit yesterday stating that Medicare is using "observation status" to deny reimbursement to beneficiaries for hospital services and nursing home stays.

The lawsuit - Bagnall v. Sebelius - claims that the use of observation status is a violation of the Medicare statute, the Freedom of Information Act, and the Due Process Clause of the Fifth Amendment.

The lawsuit was filed on behalf of seven Medicare beneficiaries who had to pay the majority of their hospitalization costs because they were classified as "outpatient."

To read more on the Hill’s healthcare blog, click here.

To read more in the Connecticut Mirror, click here.

To view the lawsuit, click here.

To access a supporting document on the CMA website, click here.


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