02/27/2026
IRFs get a 2.6% Medicare payment bump for FY 2026
Good news for inpatient rehab: Medicare IRF PPS rates will rise 2.6% in FY 2026 (3.3% market basket minus 0.7% productivity). CMS also finalized technical updates (wage index, case-mix weights) and adjusted the outlier threshold to maintain 3% of total payments. Centers for Medicare & Medicaid Services (CMS).
Why it matters:
-Modest relief for IRFs facing wage inflation and staffing pressure
-Small but positive step for access and sustainability
-Still short of fully offsetting cost growth—watch margins
Source: https://www.healthcarefinancenews.com/news/inpatient-rehab-facilities-get-26-payment-increase
CMS is finalizing its proposal to remove four SDOH standardized patient assessment data elements to reduce burden.