When Obamacare was introduced, a section was written which delegated liability to hospitals for patients who returned to the emergency room within 30 days of discharge from the emergency room. The hospital would be liable for their stay. In conjunction with Medicare denying claims of hospital stays as being unnecessary, hospital boards throughout the country met and the "Under Observation" status was invented.

While under observation status, your liability increases outside of your hospitalization coverage. You may be charged for services that your policy does not cover. The practice has grown to hospitals devoting a whole floor to this loop hole in hospital coverage driving the individuals cost and liabilities.

A client of mine went to the emergency room with horrific back pain and was put in a room. She had back surgery and was never admitted to the hospital. As she had original medicare with supplemental coverage, she was responsible for her rehab room and board which would have been covered if she was admitted. Her husband was charged $17,000.

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