On July 30, 2012, CMS published a notice announcing that it will boost Medicare inpatient rehabilitation facility (IRF) PPS payments by 2.1% in FY 2013, resulting in an estimated $140 million increase in payments compared to FY 2012. This rate increase reflects a 2.7% market basket update, which is reduced by 0.8 percentage points under the ACA (a 0.7 percentage point productivity reduction and an additional 0.1 percentage point reduction), and then increased by 0.2 percentage points due to an update to the outlier threshold amount. In addition to setting forth the rate update and revised outlier threshold, the notice updates IRF PPS relative weights and average length of stay values, applies the wage index and the labor-related share in a budget neutral manner, and updates the cost-to-charge ratio ceilings, among other things. The updated rates are effective for IRF discharges occurring on or after October 1, 2012 through September 30, 2013. No policy changes are being proposed in this notice.