What is the Two-Midnight rule in Medicare?

The decision to place you under inpatient care at a hospital rests with your physician, who assesses your health needs and determines if hospital admission is essential. Under Medicare’s guidelines, inpatient admission is generally considered reasonable when you are anticipated to require at least two midnights of medically necessary hospitalization. For inpatient status to be granted, your physician must issue an order for admission, and the hospital must officially register you as an inpatient.

The designation of your hospital status as either an inpatient or outpatient can significantly influence the personal financial contributions (such as deductibles, copayments, and cost-sharing) you are responsible for paying for hospital provisions (including imaging, medications, and laboratory services). Additionally, your classification as an inpatient versus an outpatient may also determine whether Medicare will extend coverage for services at a skilled nursing facility (SNF) subsequent to your time spent in the hospital.