Improving Access to Medicare Coverage Act of 2025

This bill helps Medicare patients who need short-term care in a skilled nursing facility (SNF) after a hospital stay. It says that time you spend in the hospital under “observation” will count the same as time admitted as an inpatient toward Medicare’s 3-day hospital stay rule for SNF coverage. Today, observation time usually doesn’t count, which can leave people with big bills or no coverage for needed rehab or recovery care. Under this bill, observation days will count, making it easier to qualify for SNF coverage after leaving the hospital.

Key points:

• Who is affected: People on Medicare who need SNF care after a hospital stay.
• What changes: Hospital “observation” days will count toward the 3-day requirement for SNF coverage, just like inpatient days. The day you stop receiving observation services is treated as your discharge date unless you’re then admitted as an inpatient.
• When: This starts for observation services on or after January 1, 2026. Some past cases may be reconsidered if an appeal is filed within 90 days after the law is enacted.