Medicare AdvantageAdministrativeMedium impact
Use Updated Medicare Outpatient Observation Notice
BCBS Texas·TX · Emergency Medicine·Government Programs
Effective date
Apr 20, 2026
We identified it
May 3, 2026
Summary
CMS has updated the Medicare Outpatient Observation Notice that hospitals and critical access hospitals must provide to Medicare Advantage members under outpatient observation for more than 24 hours. Providers must transition to the new notice form by April 20, 2026, and the updated version is effective through February 28, 2029.
Action Required
By April 20, 2026: Hospital billing and patient registration staff must download the updated Medicare Outpatient Observation Notice from the CMS website (available in English, Spanish, and large print). Update workflows to use the new form for Medicare Advantage members in outpatient observation over 24 hours. Ensure staff complete the notice within 36 hours of observation start, obtain member signatures, and document all communications in member records.