Fact sheets: Fiscal Year 2015 Payment and Policy Changes for Medicare Inpatient Rehabilitation Facilities

CMS: Thursday, July 31, 2014

Fiscal Year 2015 Payment and Policy Changes for Medicare Inpatient Rehabilitation Facilities

Overview.  On July 31, 2014, the Centers for Medicare & Medicaid Services (CMS) issued a final rule updating fiscal year (FY) 2015 Medicare payment policies and rates for the Inpatient Rehabilitation Facility Prospective Payment System (IRF PPS) and the IRF Quality Reporting Program (IRF QRP).

CHANGES TO IRF PAYMENT POLICIES AND RATES:

FY 2015 Updates to the Payment Rates under the IRF PPS.  CMS estimates that aggregate payments to IRFs will increase in FY 2015 by $180 million, or 2.4 percent, relative to payments in FY 2014. This estimated increase is attributed to a 2.2 percent payment update, which includes a 2.9 percent market basket increase factor, reduced by a 0.5 percentage point multi-factor productivity adjustment and an additional 0.2 percentage point reduction as required by law. In addition, CMS will update the outlier threshold, increasing IRF PPS payments by an estimated 0.2 percent. Read more