Amends Medicare to count outpatient observation services as inpatient hospital stays for coverage of skilled nursing facility services.

The bill amends Medicare to count a period of outpatient observation services in a hospital toward the 3-day inpatient hospital stay requirement for coverage of skilled nursing facility services. This change aims to improve access to Medicare coverage by ensuring that outpatient observation services are considered equivalent to inpatient stays for eligibility purposes. The amendment applies to outpatient observation services received on or after January 1, 2026.

Amends Medicare to count outpatient observation services as inpatient hospital stays for coverage of skilled nursing facility services.

The bill amends Medicare to count a period of outpatient observation services in a hospital toward the 3-day inpatient hospital stay requirement for coverage of skilled nursing facility services. This change aims to improve access to Medicare coverage by ensuring that outpatient observation services are considered equivalent to inpatient stays for eligibility purposes. The amendment applies to outpatient observation services received on or after January 1, 2026.