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The Medicare Outpatient Observation Notice (MOON): What It Means for Your Bill

On this page
  1. What is the MOON?
  2. When should I get it?
  3. Do I have to sign it?
  4. How does observation status affect my bill?
  5. How does it affect nursing home coverage?
  6. What if my status changed from inpatient to observation?
  7. What should I keep?
  8. What if I never got a MOON?
  9. Frequently asked questions
  10. Make sense of an observation bill

The Medicare Outpatient Observation Notice (MOON) is a form that tells you you're an outpatient getting observation services in the hospital. Medicare.gov says the hospital must give it to you if you're under observation for more than 24 hours, and CMS says it must arrive no later than 36 hours after observation starts. It matters because outpatient status changes what you pay in the hospital and whether Medicare covers nursing home care afterward.

What is the MOON?

It's a standard CMS form, CMS-10611. Medicare.gov says the MOON tells you why you're getting observation services as an outpatient, and how that affects what you pay in the hospital and for care after you leave.

The hospital fills in your name, a patient number, and the reason you're an outpatient. CMS lists the MOON under its notices for both Original Medicare and Medicare Advantage.

For a full side-by-side of observation and inpatient costs, see observation status vs. inpatient. This page focuses on the notice itself and what to do with it.

When should I get it?

According to CMS:

  • The hospital must give the MOON to people getting observation services as outpatients for more than 24 hours.
  • It must be given no later than 36 hours after observation starts, or sooner if you're released.
  • Hospitals may give it earlier, before 24 hours have passed.

You can be in a regular hospital room, stay overnight, and still be an outpatient. If you've been in the hospital a day or more and aren't sure of your status, ask.

What to say to the nurse or case manager:

"Can you tell me if [patient name] is an inpatient or an outpatient under observation? If it's observation, may we have the Medicare Outpatient Observation Notice?"

Do I have to sign it?

CMS says the hospital must explain the notice out loud and get your signature, or your representative's, to show you got it. CMS's instructions say the hospital must answer your questions as best it can. If you refuse to sign, the hospital can note that on the form.

Signing shows you got the notice. Ask your questions first.

Questions to ask before you sign:

  • "Why is this an observation stay and not an inpatient admission?"
  • "Is the doctor thinking about admitting [patient name]? When will that be decided?"
  • "What will we likely pay for this stay?"
  • "If [patient name] needs a nursing home or rehab after this, will Medicare cover it?"

How does observation status affect my bill?

Medicare.gov explains that observation services are outpatient services, covered under Part B. In general, that means:

  • Part B costs, like the Part B deductible and 20% coinsurance for doctor services and many hospital outpatient services. The Part A hospital deductible doesn't apply.
  • Separate charges for each service, which can add up over a longer stay.
  • Possible charges for prescription and over-the-counter drugs you'd normally take yourself, which Part B generally doesn't cover in the outpatient setting. Drugs during observation explains this and how to ask your drug plan to pay you back.

If you have Medicare Advantage, your plan's copays for outpatient care apply instead. Check your plan's Explanation of Benefits.

How does it affect nursing home coverage?

This part is easy to miss. Medicare.gov says that to cover skilled nursing facility care, Original Medicare generally requires a medically necessary inpatient hospital stay of at least 3 days in a row. Time under observation, or in the emergency room before you're admitted, doesn't count toward those 3 days, even if you stay overnight.

So a parent could spend several nights in the hospital, then need rehab, and find out Medicare won't pay for the nursing home. If rehab may be needed, ask early. See skilled nursing facility bills and Medicare.

Medicare Advantage Plans may have different rules, so ask your plan.

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What if my status changed from inpatient to observation?

Medicare.gov says that if you were admitted as an inpatient and the hospital changed your status to outpatient getting observation services, you may be able to appeal the denial of Part A inpatient coverage. You should get a Medicare Change of Status Notice (CMS-10868) explaining how. See changed from inpatient to observation: how to appeal.

What should I keep?

  • Your copy of the MOON.
  • Notes on who you spoke to and what they said.
  • Discharge papers.

Later, compare the hospital bill and your Medicare Summary Notice. The MSN shows which services were billed under Part B. See how to read your Medicare Summary Notice.

What if I never got a MOON?

If you were under observation more than 24 hours and didn't get one, write down the dates and times. Then ask the hospital's patient advocate or billing office.

What to say:

"[Patient name] was under observation from [date and time] to [date and time] and we never received a Medicare Outpatient Observation Notice. Can you check the record and tell me whether one was given? We'd also like an itemized bill."

You can also call 1-800-MEDICARE (1-800-633-4227) or your State Health Insurance Assistance Program (SHIP) at shiphelp.org for free help. See how to ask for an itemized hospital bill.

Frequently asked questions

What is a MOON?

The Medicare Outpatient Observation Notice. It tells you you're an outpatient getting observation services and how that affects your costs.

When do I get a MOON?

If you're under observation more than 24 hours. CMS says it must be given no later than 36 hours after observation starts, or sooner if you're released.

Does signing the MOON mean I agree?

CMS says your signature shows you received the notice. Ask your questions before signing, and keep your copy.

Do observation days count toward the 3-day stay for nursing home coverage?

No. Medicare.gov says time under observation doesn't count toward the 3-day inpatient stay, even overnight.

Make sense of an observation bill

Bill Review Coach is a monthly medical bill review service for seniors and their families. Upload your first bill free, no card needed. Snap a photo of the hospital bill and your Medicare notice, and you'll get back a plain-English summary of what may be wrong and what to ask. Refer a friend and you both get a free month once they join the paid plan. You make the calls and write the emails; we help you know what to say.

General information, not legal advice. Check your own bill and notices.

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It's free, and no email is needed to see the results. Your first bill review is free, no card needed.

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