CMS issued a proposed rule on April 24, 2015 that would update FY 2016 Medicare payment policies and rates for the Inpatient Psychiatric Facilities (IPF) PPS. The proposed rule also would update quality measures and reporting requirements under the the IPF Quality Reporting Program, under which facilities report on quality measures or are subject to a 2 percentage point reduction in their annual payment update. The proposed rule would expand the measure sets in future fiscal years and change certain data reporting requirements for these measures. CMS proposes a 1.6% update for FY 2016, which would increase aggregate payments by $80 million compared to FY 2015 levels. The proposed update reflects a 2.7% increase under a proposed new IPF-specific market basket, reduced by a 0.6 percentage point productivity adjustment and an additional 0.2 percentage point reduction under the ACA, and further reduced by 0.3% as a result of an update of the outlier fixed-dollar loss threshold amount. CMS also proposes to transition to new Core Based Statistical Area (CBSA) designations in IPF PPS wage index, and phase out the rural adjustment for IPF providers whose status changes from rural to urban as a result of the proposed wage index CBSA changes. The official version of the rule will be published on May 1, 2015, and CMS will accept comments on the proposed rule until June 23, 2015.