Senator Chuck Schumer (D-N.Y.) has introduced legislation to expand Medicare coverage of rehabilitation treatment in skilled nursing facilities.

Under current rules, Medicare covers post-acute care in a skilled nursing facility if a patient had at least three consecutive days of hospitalization as an inpatient. However, patients admitted for ‘observation’ are not considered to have been formally admitted to the hospital. Because these patients don’t meet the three-day hospital inpatient stay threshold, Medicare doesn’t pay for the SNF treatment.

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