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Medicare laws enacted by Congress say a patient becomes qualified to have Medicare pay for skilled nursing home care IF he was a hospital inpatient for 3 days in a row. After more than one week in a Connecticut hospital Larry was disqualified for Medicare nursing home coverage because the hospital kept him on observation status. Larrys wife lee remembers how she found out: on the fifth day a neurologist flanked by Larrys doctor and a social worker, ushered me into the hall and said were sorry but your husband was never admitted. I was stunned with disbelief. Im John Roberts an elder law attorney for people in Hampden County Massachusetts hospital observation status cancels Medicare nursing home coverage being admitted to the hospital is key to qualifying for Medicare coverage extended care in a skilled nursing facility regulations say medicare will start paying for up to 100 days of nursing home care as long as the impatient to the hospital had a medically necessary stay of at