CMS finalizes 2.8% payment increase for inpatient rehabilitation facilities for FY 2027

CMS has finalized payment updates and coverage changes for inpatient rehabilitation facilities for fiscal year 2027. The rule includes a 2.8% market basket increase, effective October 1, 2026. This update follows the proposed rule issued earlier this year and adjusts payment rates for the IRF prospective payment system. The final rule also incorporates changes to the IRF quality reporting program and updates the wage index. Facilities should review the final Federal Register notice to understand the full impact on their Medicare reimbursement for the coming fiscal year. No immediate action is required, but billing staff should prepare for the rate change effective this fall.