Medicare Benefit Policy Manual (Pub. 100-02), Ch. 8 § 50
Covered Extended Care Services
50 - Covered Extended Care Services
(Rev. 1, 10-01-03)
A3-3133, SNF-230
Patients covered under hospital insurance are entitled to have payment made on their
behalf for covered extended care services. Payment may be based on reasonable cost or
be under the SNF Prospective Payment System (see §10). The facility may charge the
beneficiary for services they request that are not included in the PPS rate or otherwise
covered by Medicare (i.e. extra meals for family members).
An inpatient is a person who has been admitted to a skilled nursing facility or swing bed
hospital for bed occupancy for purposes of receiving inpatient services. A person is
considered an inpatient if formally admitted as an inpatient with the expectation that they
will remain at least overnight and occupy a bed even though it later develops that they
can be discharged and do not actually use a bed overnight.
NOTES:
1. Custodial care (see Medicare Benefit Policy Manual, Chapter 16, “General Exclusions
from Coverage,” §110) is not a covered extended care service.
2. When patients requiring inpatient hospital services occupy beds in a SNF, they are
considered inpatients of the SNF. In such cases, the services furnished in the SNF
may not be considered inpatient hospital services, and payment may not be made
under the program for such services. Such a situation may arise where the SNF is a
distinct part of an institution the remainder of which is a hospital, and either there is
no bed available in the hospital, or for any other reason the institution fails to place
the patient in the appropriate bed. The same rule applies where the SNF is a separate
institution. For the same reason, where patients who require extended care services
occupy beds in a hospital, payment cannot be made on their behalf for the services
furnished to them in the hospital, unless the services are extended care services
furnished pursuant to a swing bed approval. (See Medicare Benefit Policy Manual,
Chapter 1, “Inpatient Hospital Services,” §10.)
3. When patients who require SNF services are placed in a noncertified part of an
institution which contains a participating “distinct part” SNF, the services may be
paid under certain conditions, based on the limitation of liability provisions. (See
Medicare Claims Processing Manual, Chapter 30, “Limitation of Liability,” §10.4.)
The extended care services in §§50.1 - 50.9, below, are covered under hospital insurance.