Medicare Inpatient Rehabilitation Facility Rate Update for FY 2011

On July 22, 2010, CMS published a notice announcing FY 2011 Medicare inpatient rehabilitation facility (IRF) rates. CMS estimates that the rule will increase aggregate payments to IRFs by $135 million for FY 2011, or approximately 2.16%. This increase reflects a 2.5% market basket increase, which is reduced by 0.25 percentage point as mandated by the ACA, along with an approximate 0.1% overall estimated decrease in estimated IRF outlier payments resulting from an update to the outlier threshold amount from 3.1% in FY 2010 to 3% in FY 2011.

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