Medicare Beneficiary Observation Status or Observation Services & Medicare Part B Class Action Lawsuit Complaint

Medicare Beneficiaries Placed On Observation Status or Observation Service File Class Action Lawsuit Against Secretary of Health and Human Services Kathleen Sebelius.

A class action lawsuit has been filed against Secretary of Health and Human Services Kathleen Sebelius (the “Secretary” or “Defendant”) in the United States District Court for the District of Connecticut (styled Richard Bagnall, Michael Savage, Lee Barrows, George Renshaw, Sarah Mulcahy, Shirley Burton and Denise Rugman v. Kathleen Sebelius, Secretary of Health & Human Services), alleging, among other things, that the Secretary of Health and Human Services has long had a policy under which Medicare beneficiaries in hospitals, instead of being formally admitted, are placed on what is commonly referred to as “observation status” or  “observation services” and that Medicare beneficiaries on observation status are considered outpatients by the Secretary which are covered and billed under Medicare Part B, as opposed to inpatient hospitalization which is covered and billed under Medicare Part A, according to the Medicare Observation Status Services Medicare Part B class action lawsuit complaint.

The Medicare Observation Status Services Medicare Part B putative class is reportedly defined as:

All Medicare beneficiaries who, on or after January 1, 2009, have had or will have had any portion of a stay in a hospital treated as observation status and therefore not covered under Medicare Part A.

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