The OIG has issued two recent reports on inpatient rehabilitation facilities’ (IRF) compliance with Medicare policies. One report concluded that IRFs did not always code claims in compliance with Medicare’s transfer policy, which provides lower reimbursement for cases in which a beneficiary is transferred rather than discharged to home. Of the 220 claims in the OIG’s sample, 213 claims pertained to transfers to facilities that were subject to Medicare’s transfer regulation but were improperly coded as discharges. Based on this sample, CMS estimates that fiscal intermediaries overpaid $34 million to IRFs for the 4-year period that ended September 30, 2007. In addition, while new claims edits detected miscoded claims, fiscal intermediaries did not take appropriate action to adjust the claims and prevent incorrect payments. The OIG recommended that CMS take steps to recover the overpayments and prevent future incorrect payments. In a second report, the OIG found that IRFs did not always receive reduced case-mix-group payments for claims with patient assessment instruments that were transmitted to CMS’s National Assessment Collection Database more than 27 days after the beneficiaries’ discharges, even though such claims should be reduced by 25%. According to the OIG, IRFs did not receive reduced case-mix-group payments for 113 of the 200 sampled claims with patient assessment instruments transmitted after the 27-day deadline. The OIG made several recommendations to address IRF payment associated with assessments not transmitted according to deadlines, with which CMS concurred.