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May 8, 2007
 Medicare Program: Inpatient Rehabilitation Facility Prospective Payment
System for Federal Fiscal Year 2008
The Centers for Medicare and Medicaid Services proposed that
inpatient rehabilitation facilities (IRFs) receive increased Medicare
payments for discharges occurring on or after October 1, 2007. The
proposed rule would update payment rates and modify payment policies for
services. In fiscal year 2008, Medicare payments to approximately 1,234
IRFs may increase by $150 million. Key changes that began July 1, 2007,
include the following:
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IRF payment rate increased by 3.3%
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Compliance with the 75% Rule increased to 65%
for 12-month cost reporting periods beginning July 1, 2007
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High-cost outlier threshold increased to
$7,522
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Short-stay transfer cases that met the
criteria to qualify for outlier payments are eligible to receive the
additional payments
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OPEN MINDS