Washington, D.C. – The American Health Care Association (AHCA) today commends members of Congress for reintroducing the Improving Access to Medicare Coverage Act. Senators Susan Collins (R-ME) and Peter Welch (D-VT) recently reintroduced the legislation, which ensures that time spent under “observation status” in a hospital counts toward satisfying the three-day inpatient hospital requirement for coverage of skilled nursing care services under Medicare.
“Medicare beneficiaries deserve clear, fair access to post-acute care services,” said Clif Porter, president and CEO of AHCA. “For too long, observation stays have created confusion and barriers for seniors who require post-acute care following a hospital stay. We’re grateful to Senators Collins and Welch for reintroducing this important legislation and supporting the rights of seniors to access the care they need and deserve.”
“This bipartisan effort is an important step toward modernizing Medicare policy to better meet the needs of seniors across the country,” said Michael Bassett, senior vice president of Government Relations at AHCA. “This legislation would help protect beneficiaries’ access to timely, affordable skilled nursing care. We thank Senators Collins and Welch for advancing a commonsense solution that puts patients first.”
For years, AHCA has voiced concern over the three-day stay requirement and continues to support a full repeal of the requirement, noting that it is an arbitrary timeline established decades ago that no longer reflects modern care delivery. A 2026 study on observation stays demonstrated that the rule offers no improved health outcomes for patients, directly contradicting an original rationale for the requirement.
For more information about observation stays and other Medicare issues, please visit the AHCA/NCAL website here.