Medicare AdvantageAdministrativeMedium impact
Use Updated Medicare Outpatient Observation Notice
BCBS Illinois·IL · Emergency Medicine, Critical Care·Government Programs
Effective date
Apr 20, 2026
We identified it
Jun 16, 2026
Summary
CMS has updated the Medicare Outpatient Observation Notice that hospitals must provide to Medicare Advantage members under observation for more than 24 hours. Healthcare facilities must transition to using the new standardized notice form by April 20, 2026, which explains why patients aren't admitted as inpatients and their coverage obligations.
Action Required
By April 20, 2026: Hospital staff must download the updated Medicare Outpatient Observation Notice from the CMS website (available in English, Spanish, and large print). Staff must complete the notice within 36 hours of observation start, verbally explain it to Medicare Advantage members in observation over 24 hours, obtain patient signature or document refusal, and document all communications in patient records. Failure to provide proper notification may affect Medicare Advantage reimbursement.