Medicare AdvantageAdministrativeMedium impact
Use Updated Medicare Outpatient Observation Notice
BCBS Montana·Emergency Medicine·Government Programs
Effective date
Apr 20, 2026
We identified it
Jun 18, 2026
Summary
The Centers for Medicare & Medicaid Services has updated the Medicare Outpatient Observation Notice that hospitals must provide to Medicare Advantage members under observation for more than 24 hours. Providers must transition to using the new CMS 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 workflows to ensure the new notice is provided to Medicare Advantage members within 36 hours of observation beginning when observation exceeds 24 hours. Staff must verbally explain the notice, obtain member signature, and document all communications in patient records.