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A study of more than 195,000 Medicare clients who were in the hospital for observation in 2010 found that only a tiny fraction were discharged to a skilled nursing facility, and fewer still had their care covered by Medicare. The findings have implications in light of the two-midnight rule and other policies that may not affect large numbers of beneficiaries, but can have a sizable impact on those who are affected.

Steve Miller, MD, chief medical officer of Express Scripts, explained indication-specific pricing as an alternate pricing model for high cost specialty medications like oncology drugs.