Medicare Coverage: Observation vs. Inpatient Status On September 23, a federal district court in Connecticut dismissed the case of Bagnall v. Sebelius.  A group of Medicare beneficiaries, the Plaintiffs, filed this lawsuit to protest the use of “observation status” during their hospital stays.  Patients on observation status are designated as outpatients, even though they may stay on … Continue reading Medicare Coverage: Observation vs. Inpatient Status