Member News

The Centers for Medicare & Medicaid Services (CMS) recently released proposed rules for the Inpatient Rehabilitation Facility (IRF) Prospective Payment System (PPS) and the Skilled Nursing Facility Prospective Payment System on April 3, 2026. These proposed rules would update the prospective payment rates for services provided in the IRF and SNF settings starting on October 1, 2026. 

FY 2027 IRF PPS Proposed Rule 

CMS proposes to update the IRF PPS payment rates by 2.4 percent for FY 2027.  

This proposed rule would also revise the current Interdisciplinary Team (IDT) policy to mandate that the initial meeting is completed on or before the fourth day of admission to align with the plan of care, and clarifying that subsequent IDT meetings are conducted weekly (with CMS defining "weekly" as seven days from the date of the initial IDT meeting that must occur by day four).  

A fact sheet for this proposed rule with additional information can be found on the CMS website. 

FY 2027 SNF PPS Proposed Rule 

The proposed rule would update SNF PPS rates by 2.4 percent for FY 2025. The proposed rule would also remove two measures related to COVID-19 vaccination coverage for personnel and patients/residents and includes a Request for Information (RFI) on potential inclusion of a measure focused on advanced care planning in future years. 

A fact sheet for this proposed rule with additional information can be found on the CMS website. 

AAPM&R Stays Strong on Advocating for Fair Payment 

While AAPM&R appreciates that CMS recognizes the value of care that patients receive in the IRF and SNF settings, we will continue to strongly advocate for a corresponding increase to physician payment rates under the Medicare program. For many years, physician payment has continued to be targeted for cuts that are unsustainable and threaten the viability of physician practices. 

Academy staff and relevant committees are currently reviewing the text of these proposed rules to determine their potential impact on physiatrists, and, if applicable, will draft comments for submission to CMS and distribution to membership. We will continue to monitor and update as more information becomes available.  

Comments on these proposed rules are due to CMS by close of business on June 1, 2026, after which CMS is expected to release final payment rules later this summer. Members with questions about either the IRF PPS or SNF PPS proposed rules can contact Academy staff directly at healthpolicy@aapmr.org.