S. 4641Senate119th Congress (2025-2027)In Committee

A bill to amend title XVIII of the Social Security Act to count a period of receipt of outpatient observation services in a hospital toward satisfying the 3-day inpatient hospital requirement for coverage of skilled nursing facility services under Medicare.

Introduced May 21, 2026

AI-Generated Summary

Updated June 4, 2026 at 3:12 AM UTC

The Improving Access to Medicare Coverage Act of 2026 changes Medicare rules so that time spent receiving outpatient observation services in a hospital counts toward the three‑day inpatient stay needed for skilled nursing facility coverage. This helps patients who are placed under observation rather than admitted as inpatients to qualify for SNF benefits. The change applies to services starting January 1, 2026, and affects Medicare beneficiaries and the hospitals that provide observation care.

Key Provisions

  • Outpatient observation periods are treated as inpatient stays for the purpose of meeting the three‑day requirement for skilled nursing facility coverage.
  • The date a patient stops receiving observation services is considered the hospital discharge date, unless the patient is admitted as an inpatient at that time.
  • The rule applies to observation services beginning on or after January 1, 2026, and can be applied retroactively to cases appealed within 90 days of the law’s enactment.
  • The Secretary of Health and Human Services may implement the change through an interim final regulation or program instruction.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

May 21, 2026

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SenateIntro Referral

Introduced in Senate

May 21, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

May 21, 2026

Bill Text

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Introduced in SenateIssued May 21, 2026

II

119th CONGRESS

2d Session

S. 4641

IN THE SENATE OF THE UNITED STATES

May 21, 2026

Ms. Collins (for herself, Mr. Welch, and Mrs. Capito) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title XVIII of the Social Security Act to count a period of receipt of outpatient observation services in a hospital toward satisfying the 3-day inpatient hospital requirement for coverage of skilled nursing facility services under Medicare.

1.

Short title

This Act may be cited as the Improving Access to Medicare Coverage Act of 2026.

2.

Counting a period of receipt of outpatient observation services in a hospital toward the 3-day inpatient hospital requirement for coverage of skilled nursing facility services under Medicare

(a)

In general

Section 1861(i) of the Social Security Act (42 U.S.C. 1395x(i)) is amended by adding at the end the following: For purposes of this subsection, an individual receiving outpatient observation services shall be deemed to be an inpatient during such period, and the date such individual ceases receiving such services shall be deemed the hospital discharge date (unless such individual is admitted as a hospital inpatient at the end of such period)..

(b)

Effective date

The amendment made by subsection (a) shall apply to receipt of outpatient observation services beginning on or after January 1, 2026, but applies to a period of post-hospital extended care services that was completed before the date of the enactment of this Act only if an administrative appeal is or has been made with respect to such services not later than 90 days after the date of the enactment of this Act. Notwithstanding any other provision of law, the Secretary of Health and Human Services may implement such amendment through an interim final regulation, program instruction, or otherwise.