BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SJR 8| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. SJR 8 Page 2 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 SJR 8 Page 3 Prepared by: Karen Chow / SFA / (916) 651-1520 5/26/15 11:35:13 **** END ****