Medicare Proposes $295 Million Pay Hike for Rehab Facilities

Medicare payment rates for inpatient rehabilitation facilities would increase by $295 million, or 2.6%, in fiscal year 2026 under a proposal released Friday by the Trump administration.

The proposed rule from the Centers for Medicare & Medicaid Services (RIN: 0938-AV48) also proposes changes to the inpatient rehab facility quality reporting program.

If finalized, the rule would remove two quality measures that focus on uptake of covid vaccines: The COVID-19 Vaccination Coverage among Healthcare Personnel measure, beginning in FY 2026; and the COVID-19 Vaccine: Percent of Patients/Residents Who Are Up to Date measure, beginning in FY 2028.

The proposal ...