Inpatient Rehab Facilities to Get $280 Million Medicare Pay Hike

bgov.com

August 1, 2024 3:47 pm

  • Increase for fiscal year 2025 larger than proposed
  • Advisory panel had called for base payment rate cut

Inpatient rehabilitation facilities will see an additional $280 million in Medicare payments in fiscal year 2025 under a rate hike announced Wednesday by the Centers for Medicare & Medicaid Services.

The final rule (RIN 0938-AV31) provides a larger rate update than the agency’s proposed 2.8% increase of $255 million over 2024.

Inpatient rehabilitation facilities offer intensive services after an illness, injury, or surgery. Under supervision by rehabilitation physicians, the facilities provide physical and occupational therapy, rehabilitation nursing, speech–language pathology, and prosthetic and orthotic services, according to the Medicare Payment Advisory Commission.

The commission, which advises Congress on Medicare issues, called for a base payment rate cut of 5% for inpatient rehab facilities next year.

In 2022, Medicare paid $8.8 billion for 383,000 rehab facility stays by fee-for-service beneficiaries in some 1,180 facilities nationwide, the commission reported. Beneficiaries in the traditional Medicare program accounted for about 51% of facility discharges in 2022.