Medicare to Increase Payments for Inpatient Rehabilitation Facilities in FY 2027

A physical therapist works with a patient during inpatient rehabilitation. CMS has finalized a 2.3% Medicare payment increase for inpatient rehabilitation facilities beginning in fiscal year 2027, alongside updates to quality reporting requirements and reimbursement policies. wedmoments.stock/Shutterstock

The Centers for Medicare & Medicaid Services (CMS) has published a final rule updating payment rates for inpatient rehabilitation facilities (IRFs) under Medicare for federal fiscal year 2027, effective October 1, 2026. The rule was published in the Federal Register on August 3, 2026.

CMS Finalizes FY 2027 Payment Update