Medicare Updates Inpatient Rehab Payments for 2026
Published Date: 8/5/2025
Rule
Summary
Starting in FY 2026, inpatient rehab facilities will see updated payment rates and changes to how patient cases are grouped and valued. The rural payment boost is being phased out for the second year, which might affect some smaller or rural facilities' funding. Plus, quality reporting rules are getting a refresh to keep care top-notch and transparent.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 1 costs, 2 mixed.
FY2026 IRF Payment Rate Update
The rule updates the inpatient rehabilitation facility (IRF) prospective payment rates for Federal fiscal year (FY) 2026. It includes the classification and weighting factors used to compute those FY 2026 payment rates.
Case-Mix Grouping & Weight Changes
The rule includes the classification and weighting factors for the IRF prospective payment system's case-mix groups that apply for FY 2026. It also describes the methods and data used to compute those case-mix group values.
Rural Adjustment Phaseout Continues
The rule continues the second year of a 3-year phaseout of the rural adjustment that began in FY 2025. This continues a scheduled reduction in the rural payment adjustment for IRFs.
IRF Quality Reporting Updates
The rule updates the Inpatient Rehabilitation Facility (IRF) Quality Reporting Program. These updates affect how IRFs report quality measures and are intended to maintain transparency and quality monitoring.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-20281, Global Benchmark for Efficient Drug Pricing (GLOBE) Model
Starting November 30, 2026, Medicare will use the new GLOBE Model to help lower the cost of certain drugs for people on Original Medicare. This model changes how drug price increases are calculated, aiming to save money for both patients and the Medicare program without cutting care quality. If you’re on Medicare Part B, expect smarter drug pricing that helps keep your healthcare affordable.
2026-20131, Medicare Program; Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2027 and Updates to the IRF Quality Reporting Program; Correction
This correction fixes some technical mistakes in the Medicare payment rules for inpatient rehab facilities starting October 1, 2026. It mainly affects hospitals and rehab centers by clarifying how wage data and payments are calculated, ensuring fairer payment rates for fiscal year 2027. No big changes in money, but it keeps everything accurate and on track.
2026-19959, Medicare Program; Prospective Payment System and Consolidated Billing for Skilled Nursing Facilities; Updates to the Quality Reporting Program for Federal Fiscal Year 2027; Correction
This correction fixes some technical mistakes in Medicare payment rules for skilled nursing facilities starting October 1, 2026. It mainly affects how hospital data is used to calculate payments, making sure no current hospitals are wrongly excluded. These tweaks help keep Medicare payments fair and accurate for providers and patients.
2026-20067, Medicare Program; FY 2027 Hospice Wage Index and Payment Rate Update and Hospice Quality Reporting Program Requirements; Correction
This correction fixes some technical mistakes in the FY 2027 hospice payment and wage index rules that were first published in August 2026. It mainly affects hospice providers by updating how their payments are calculated, making sure the numbers are accurate starting October 1, 2026. These changes help ensure hospices get the right payment amounts based on the latest hospital wage data.
2026-19946, Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals (IPPS) and the Long-Term Care Hospital Prospective Payment System and Policy Changes and Fiscal Year (FY) 2027 Rates; Requirements for Quality Programs; Other Policy Changes; and Adoption of Updated Versions of Certain Health Information Technology Standards; Correction
This update fixes some typos and technical mistakes in the Medicare payment rules for hospitals starting October 1, 2026. It affects hospitals getting paid for patient care, making sure the payment system and quality programs run smoothly. These corrections help hospitals get the right payments and follow updated health tech standards without delays or confusion.
2026-15652, Medicare Program; Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2027 and Updates to the IRF Quality Reporting Program
This final rule updates the prospective payment rates for inpatient rehabilitation facilities (IRFs) for Federal fiscal year (FY) 2027. As required by statute, this final rule includes the classification and weighting factors for the IRF prospective payment system's (PPS) case-mix groups and a description of the methodologies and data used in computing the prospective payment rates for FY 2027. It also finalizes the third and final of the 3-year phaseout of the rural adjustment, which began in FY 2025. This final rule includes a solicitation for public comments on alternative data sources for the IRF PPS wage index; requires all therapy treatments and/or therapy evaluations to begin no later than 36 hours from midnight on the day of admission; finalizes requirements for the initial Interdisciplinary Team meeting to occur on or before 4 days from the date the patient is admitted; and summarizes a request for information on potential future IRF PPS payment reform. Additionally, this final rule includes updates to the IRF Quality Reporting Program and changes to the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program.
Previous / Next Documents
Previous: 2025-14779, Special Conditions: Sikorsky Model S-61A, S-61L, and S-61N (Including Those Modified by Supplemental Type Certificate (STC) No. SH640NE) Helicopters; Overload Protection Device in a Hoist
Sikorsky helicopters S-61A, S-61L, and S-61N, especially those modified by Carson Helicopters, are getting a new safety feature: an overload protection device in their hoists. Since current rules don’t cover this tech, special safety standards are now set to keep everyone safe. This means operators need to follow these new rules to keep flying smoothly and safely.
Next: 2025-14781, Medicare Program; FY 2026 Inpatient Psychiatric Facilities Prospective Payment System-Rate Update
Starting October 1, 2025, Medicare is updating how it pays inpatient psychiatric hospitals and units, including changes to rates, wage adjustments, and special payments for teaching and rural facilities. These updates affect hospitals that care for patients with mental health needs and aim to make payments fairer and more accurate. Plus, quality reporting rules are getting a refresh to keep care top-notch through September 30, 2026.