Medicare AdvantageAdministrativeMedium impact
Use Updated Medicare Outpatient Observation Notice
BCBS New Mexico·Emergency Medicine·Government Programs
Effective date
Apr 20, 2026
We identified it
Jun 18, 2026
Summary
CMS has updated the Medicare Outpatient Observation Notice that hospitals must provide to Medicare Advantage patients under observation for more than 24 hours. Providers must transition to the new notice by April 20, 2026, and the updated version is effective through February 28, 2029.
Action Required
By April 20, 2026: Hospital billing and nursing staff must download the updated Medicare Outpatient Observation Notice from the CMS website (available in English, Spanish, and large print). Update patient notification procedures to use the new form for all Medicare Advantage patients under observation more than 24 hours. Ensure staff complete the notice within 36 hours of observation start and document all communications in patient records.