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Observation Status: Financial Implications for Medicare Beneficiaries

This report by Keith D. Lind and Claire Noel-Miller, Senior Policy Advisors with AARP’s Public Policy Institute, and their coauthors, reveals that Medicare rules for observation status are having a notable impact on the cost of health care for many beneficiaries, and perhaps also on their decisions about whether or not to seek doctor recommended follow-up care in a skilled nursing facility.