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How the two-midnight rule may affect Medicare Advantage finances

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Medicare Advantage companies and healthcare providers are reckoning with the effects of an updated federal policy that governs how to pay for patients’ hospital stays.


The "two-midnight rule," newly applied to Medicare Advantage this year, lets hospitals categorize more patient visits as higher-cost, inpatient stays. In addition to threatening to disrupt carriers' already shaky finances, it could invite more scrutiny of Medicare Advantage companies' coverage policies and decision-making tools.

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