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MLN Connects^® Newsletter Message

Inpatient Rehabilitation Facility Prospective Payment System: FY 2025 Pricer Update

CMS published payment rates effective October 1, 2024, in the FY 2025 Inpatient Rehabilitation Facility (IRF) Prospective Payment System (PPS) final rule. 

We’re adopting the latest core-based statistical area delineations. For providers located in counties previously considered rural, which will be considered urban starting in FY 2025, we finalized a rural transition policy. They’ll get two thirds of the IRF PPS rural adjustment in FY 2025, one third of the rural adjustment in FY 2026, and no rural adjustment in FY 2027.

Effective FY 2023, CMS won’t reduce IRF final wage indexes by more than 5% compared to the prior FY. This doesn’t apply to new IRFs that open in FY 2025 because they didn’t have a prior wage index. 

More Information:

• Section 140.2 Medicare Claims Processing Manual, Chapter 3 (PDF)
• Instruction to your Medicare Administrative Contractor (PDF)