Medicare Outpatient Observation Notice for Blue Cross Medicare Advantage HMO℠ and Blue Cross Medicare Advantage PPO℠

February 22, 2017

Effective March 1, 2017, the Notice of Observation Treatment and Implication for Care Eligibility Act (NOTICE Act) requires hospitals and Critical Access Hospitals (CAH) to provide notification to individuals receiving observation services as outpatients for more than 24 hours.

Hospitals and CAHs would be required to furnish the CMS-developed standardized notice, the Medicare Outpatient Observation Notice (MOON), to a Medicare beneficiary or enrollee who has been receiving observation services as an outpatient for more than 24 hours. The notice must be provided no later than 36 hours after observation services are initiated. CMS developed a standardized notice along with instructions on how to complete and they are available on the CMS Website; Learn more about third-party links scroll down to access copies of the CMS MOON instructions and forms in both English and Spanish.

The MOON will inform nearly one million beneficiaries annually of the reason the individual is an outpatient receiving observation services and the implications of observation services on cost sharing.

An oral explanation of the MOON must be provided, ideally in conjunction with the delivery of the notice, and a signature must be obtained from the individual, or an individual qualified to act on their behalf, to acknowledge receipt and understanding of the notice (or in cases of refusal of signature by such individual, signature by the staff member of the hospital or CAH providing the notice).

Thank you for your continued participation. If you have any questions or if you need additional information, please contact your BCBSTX Network Management Representative.