CMS has released its proposed rule for inpatient rehabilitation facilities, which would see an estimated 2.8% increase in payments in 2025.
The payment update includes a 3.2% market basket update, which is reduced by a 0.4% productivity adjustment. Additionally, CMS proposes to update the outlier threshold to maintain outlier payments at 3% of total payments.
"We estimate the proposed technical rate setting changes would result in a preliminary estimated increase in IRF payments of $255 million for [fiscal year] 2025," CMS said in a March 27 news release. "This reflects a $280 million increase from the update to the payment rates and a $25 million decrease due to the proposed update to the outlier threshold."
CMS also plans to adopt and modify certain assessment items associated with health-related social needs. Under the proposed rule, beginning Oct. 1, 2026, inpatient rehab facilities would be required to report specific data elements related to living situations and food and utilities.
"These items support a culture of engaging with and advancing equity in IRFs," the agency said. "Among other reasons, identifying patient health-related social needs via collecting these items may assist IRFs in better addressing those identified needs with the patient, their caregivers and community partners during the discharge planning process, if indicated."
Click here to read the proposed rule in full.