FY 2027 Inpatient Rehabilitation Facility PPS Proposed Rule Summary

On April 2, 2026, CMS made available for public inspection on the Federal Register website a proposed rule (CMS-1845-P) to update the Medicare inpatient rehabilitation facility prospective payment system (IRF PPS) for federal fiscal year (FY) 2027O. Additionally, this rule includes updates for the IRF Quality Reporting Program (QRP). CMS also includes two Requests for Information on alternative data sources for IRF PPS wage index and potential future IRF PPS payment reform. CMS makes proposals related to IRF therapy treatments or therapy evaluations, documentation of functional status, and interdisciplinary team meetings. Finally, this rule includes changes to the DMEPOS Competitive Bidding Program. The IRF PPS Addenda, along with other supporting documents and tables referenced in this proposed rule, are available on the CMS website atCMS-1845-P|CMS. CMS estimates that the Medicare IRF PPS payments in FY 2027 will be about $355 million higher than in FY 2026. CMS estimates that the proposal related to IRF QRP will not result in any costs or savings to IRFs during FY 2027. The deadline for comments on this proposed rule is June 1, 2026.