CMS proposes 2.6% payment update for IRFs 

The Centers for Medicare & Medicaid Services April 11 released the fiscal year 2026 proposed rule for inpatient rehabilitation facilities. The rule would increase payments by 2.6% overall, which includes a 3.4% market basket update reduced by a 0.8 percentage point productivity adjustment. CMS is also proposing a slight decrease in the outlier threshold, from $12,043 to $11,971. In addition, it has included in the rule its previously published request for information seeking input on opportunities to streamline regulations and reduce burdens on providers. 
 
For the IRF Quality Reporting Program, CMS proposes to remove four patient assessment data elements and remove the COVID-19 vaccination measures for both patients and health care personnel. CMS also asks for input on future IRF QRP measure concepts, reducing the burden in reporting patient assessment data and advancing digital quality measures in the IRF QRP. 
 
Comments are due on the proposed rule on June 10. AHA members will receive a Regulatory Advisory with additional information.