BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                         SJR 8|
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                                    THIRD READING


          Bill No:  SJR 8
          Author:   Hernandez (D)
          Introduced:5/7/15  
          Vote:     21  

           SUBJECT:   Medicare:  observation status


          SOURCE:    Author


          DIGEST:  This resolution urges the Congress and the President of  
          the United States to reform the short stay admissions criteria  
          for Medicare beneficiaries and to discontinue the two-midnight  
          policy.


          ANALYSIS:   This resolution makes the following legislative  
          findings:


          1)The federal Centers for Medicare and Medicaid Services set  
            rules for hospital stays for Medicare beneficiaries.


          2)The federal Centers for Medicare and Medicaid Services'  
            guidelines state that patients are not to be formally admitted  
            as a hospital inpatient unless the physician expects the  
            patient's condition to warrant a stay of at least two nights.


          3)This "two midnight" determination creates arbitrary decisions  
            for hospital admissions that are not based on the clinical  
            condition of the patient but rather an expected length of  
            stay.








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          4)The two-midnight policy has caused many seniors to be kept in  
            "observation status" without formal admission as a hospital  
            inpatient.


          5)Medicare will not pay for skilled nursing facility care unless  
            a senior has been admitted as a hospital inpatient for at  
            least three days.


          6)The observation policy, which resulted from the federal  
            Centers for Medicare and Medicaid Services' guidelines, has  
            denied seniors the appropriate criteria for admission to  
            skilled nursing facilities because time spent in "observation  
            status" does not count as a qualifying hospital admission.


          This resolution urges the Congress and the President of the  
          United States to reform the short stay admissions criteria to  
          more accurately reflect the clinical needs of a patient as  
          determined by a physician and to discontinue the two-midnight  
          policy that is currently in place.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:NoLocal:    No


          SUPPORT:   (Verified5/21/15)


          LeadingAge California
          Tenet Healthcare


          OPPOSITION:   (Verified5/21/15)


          None received
           








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          Prepared by: Karen Chow / SFA / (916) 651-1520
          5/26/15 11:35:13


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