IB 

Union Calendar No. 25 

114TH CONGRESS 

1ST SESSION H. R. 876 

[Report No. 114–39, Part I] 

To amend title XVIII of the Social Security Act to require hospitals to 

provide certain notifications to individuals classified by such hospitals 

under observation status rather than admitted as inpatients of such 

hospitals. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 11, 2015 

Mr. DOGGETT (for himself and Mr. YOUNG of Indiana) introduced the following bill; which was referred to the Committee on Ways and Means, 

and in addition to the Committee on Energy and Commerce, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

MARCH 13, 2015 

Additional sponsors: Mr. BLUMENAUER and Mr. RANGEL

MARCH 13, 2015 

Reported from the Committee on Ways and Means with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

MARCH 13, 2015 

The Committee on Energy and Commerce discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be 

printed 

[For text of introduced bill, see copy of bill as introduced on February 11, 2015] 


tkelley on DSK3SPTVN1PROD with BILLS
2 

•HR 876 RH

A BILL 

To amend title XVIII of the Social Security Act to require 

hospitals to provide certain notifications to individuals 

classified by such hospitals under observation status 

rather than admitted as inpatients of such hospitals. 


tkelley on DSK3SPTVN1PROD with BILLS
3 

•HR 876 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Notice of Observation 

5 Treatment and Implication for Care Eligibility Act’’ or the 

6 ‘‘NOTICE Act’’. 

7 SEC. 2. MEDICARE REQUIREMENT FOR HOSPITAL NOTIFI8 CATIONS OF OBSERVATION STATUS. 

9 Section 1866(a)(1) of the Social Security Act (42 

10 U.S.C. 1395cc(a)(1)) is amended— 

11 (1) in subparagraph (V), by striking at the end 

12 ‘‘and’’; 

13 (2) in the first subparagraph (W), by striking at 

14 the end the period and inserting a comma; 

15 (3) in the second subparagraph (W)— 

16 (A) by redesignating such subparagraph as 

17 subparagraph (X); and 

18 (B) by striking at the end the period and 

19 inserting ‘‘, and’’; and 

20 (4) by inserting after such subparagraph (X) the 

21 following new subparagraph: 

22 ‘‘(Y) beginning 12 months after the date of the 

23 enactment of this subparagraph, in the case of a hos24 pital or critical access hospital, with respect to each 

25 individual who receives observation services as an 


tkelley on DSK3SPTVN1PROD with BILLS
4 

•HR 876 RH

1 outpatient at such hospital or critical access hospital 

2 for more than 24 hours, to provide to such individual 

3 not later than 36 hours after the time such individual 

4 begins receiving such services (or, if sooner, upon re5 lease)— 

6 ‘‘(i) such oral explanation of the written no7 tification described in clause (ii), and such docu8 mentation of the provision of such explanation, 

9 as the Secretary determines to be appropriate; 

10 ‘‘(ii) a written notification (as specified by 

11 the Secretary pursuant to rulemaking and con12 taining such language as the Secretary prescribes 

13 consistent with this paragraph) which— 

14 ‘‘(I) explains the status of the indi15 vidual as an outpatient receiving observa16 tion services and not as an inpatient of the 

17 hospital or critical access hospital and the 

18 reasons for such status of such individual; 

19 ‘‘(II) explains the implications of such 

20 status on services furnished by the hospital 

21 or critical access hospital (including serv22 ices furnished on an inpatient basis), such 

23 as implications for cost-sharing require24 ments under this title and for subsequent 

25 eligibility for coverage under this title for 


tkelley on DSK3SPTVN1PROD with BILLS
5 

•HR 876 RH

1 services furnished by a skilled nursing facil2 ity; 

3 ‘‘(III) includes such additional infor4 mation as the Secretary determines appro5 priate; 

6 ‘‘(IV) either— 

7 ‘‘(aa) is signed by such individual 

8 or a person acting on such individual’s 

9 behalf to acknowledge receipt of such 

10 notification; or 

11 ‘‘(bb) if such individual or person 

12 refuses to provide the signature de13 scribed in item (aa), is signed by the 

14 staff member of the hospital or critical 

15 access hospital who presented the writ16 ten notification and includes the name 

17 and title of such staff member, a cer18 tification that the notification was pre19 sented, and the date and time the noti20 fication was presented; and 

21 ‘‘(V) is written and formatted using 

22 plain language and is made available in 

23 appropriate languages as determined by the 

24 Secretary.’’. 


tkelley on DSK3SPTVN1PROD with BILLS
Union Calendar No. 25 

114TH CONGRESS 

1ST SESSION H. R. 876 

[Report No. 114–39, Part I] 

A BILL 

To amend title XVIII of the Social Security Act to 

tients of such hospitals. observation status rather than admitted as inpato individuals classified by such hospitals under require hospitals to provide certain notifications 

MARCH 13, 2015 

Reported from the Committee on Ways and Means with 

an amendment 

MARCH 13, 2015 

The Committee on Energy and Commerce discharged; 

the State of the Union and ordered to be printed committed to the Committee of the Whole House on 


tkelley on DSK3SPTVN1PROD with BILLS