2025-23081RuleSignificantWallet

Medicare Patches Up Rehab Payment Calculation Goofs

Published Date: 12/17/2025

Rule

Summary

This correction fixes some math and typo mistakes in the Medicare payment rules for inpatient rehab facilities starting October 1, 2025. It mainly affects rehab centers by updating their payment rates and quality reporting details to be fair and accurate. These changes ensure providers get the right money and info for the 2026 fiscal year.

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

Previously Excluded Provider Added

If you operate an inpatient rehabilitation facility (IRF), CMS added a provider record that had been excluded from the FY 2026 rate analysis. The inclusion of that provider's 236 claims changed the outlier payment threshold and produced changes to the estimated payment impacts for the FY 2026 IRF prospective payment system.

Aggregate Payment Estimate Revised Down

CMS corrected the FY 2026 IRF aggregate cost/transfers estimate from $340 million to $335 million. That is a $5 million downward adjustment to the published aggregate payment impact for FY 2026.

Per-Case Payment Figure Corrected Up

CMS corrected several payment-related figures used in the FY 2026 IRF analysis, including raising a reported per-case figure from $10,062 to $10,141 and changing a reported value from 2.4 to 2.5. These corrected numbers feed into the FY 2026 payment calculations for IRFs.

Correction Effective and Applicability Dates

The correction published in the December 17, 2025 Federal Register is effective December 17, 2025 and is applicable to October 1, 2025. The corrections are intended to ensure the FY 2026 IRF payment and impact data accurately reflect the finalized policies as of those dates.

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Key Dates

Published Date
Rule Effective
12/17/2025
12/17/2025

Department and Agencies

Department
Independent Agency
Agency
Health and Human Services Department
Centers for Medicare & Medicaid Services
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