BCBS TexasMedium ImpactAdministrative

Hospitals Must Provide Notice to Members Under Outpatient Observation for More Than 24 Hours

Published January 12, 2026Effective January 23, 2025

AI Summary

Hospitals and critical access hospitals must now provide standardized Medicare Outpatient Observation Notice to Blue Cross Medicare Advantage members who are under outpatient observation for more than 24 hours. The notice must be completed within 36 hours of observation start and requires verbal explanation, member signature, and documentation in medical records.

Action Required

Immediately: Hospital billing and nursing staff must download the Medicare Outpatient Observation Notice from CMS website, implement workflow to identify Medicare Advantage members in observation >24 hours, provide verbal explanation and obtain signatures within 36 hours of observation start, and document all communications in patient records. Staff must also update EMR templates to track notification compliance.

Plan Types

Medicare Advantage

States

TX

Specialties

emergency-medicine, hospitalist, critical-care