On August 1, 2025, CMS issued the FFY 2026 Inpatient Rehabilitation Facility (IRF) Prospective Payment System Final Rule (CMS-1829-F).
- IRF PPS payments up 2.6% (3.3% market basket – 70 basis point productivity adjustment)
- Outlier Threshold to remain at 3% of total payments
- Updated case-mix weights, average length of stay values, and wage index
- Finalizes the proposal to amend the reconsideration policy and process to appeal
- Continues 3-year phase out of rural adjustment due to rural to urban labor market transfer
- IRF Quality Reporting (QRP) update was included
- 2% Annual Increase Factor reduction for not meeting QRP reporting requirements
- Changed and Removed QRP assessment measures
This Final Rule CMS-1829-F is scheduled to be published August 5, 2025.
Here is a link to the version currently on display for public inspection:
Here is a link to the Fact Sheet from CMS that summarizes the Final Rule:
FY 2026 Inpatient Rehabilitation Facilities Prospective Payment System Final Rule - CMS-1829-F | CMS
