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The Centers for Medicare and Medicaid Services (CMS) has released the fiscal year (FY) 2023 inpatient rehabilitation facility prospective payment system (IRF PPS) final rule that was published in today’s Federal Register. Some of the key provisions contained in the final rule are provided below:

Final FY 2023 Payment Updates
CMS estimates overall payments to IRFs will increase by 3.2 percent compared to FY 2022 levels (higher than the 2 percent estimated in the proposed rule). This update is the result of a 4.2 percent update to the IRF market basket reduced by a 0.3 percent productivity adjustment, which is required by law. As a result of this market basket increase and a few small budget neutrality adjustments, the standard payment conversion factor will increase from $17,240 to $17,878. ‎CMS is also adjusting the outlier threshold, which it says will reduce overall payments by 0.6 percent. CMS says the 3.2 percent overall increase will result in $275 million in increased payments to IRFs compared to 2022.

Proposed Expansion of IRF Transfer Policy to Include Home Health Services
CMS issued a Request for Information (RFI) in the proposed rule regarding the potential expansion of the current IRF transfer payment policy to include home health services. For background, IRFs receive a reduced case mix group (CMG) payment rate under the IRF transfer policy when the patient’s discharge occurs earlier than the average length of stay (for that respective CMG and tier) and the patient is discharged to a certain setting (an IRF, acute-care hospital, LTCH, nursing home that takes Medicare and Medicaid payment). The policy currently does not apply to home health.

The RFI in this year’s rule followed a December 2021 Office of Inspector General (OIG) report finding that Medicare could have saved over $993 million had the IRF transfer policy been expanded to include home health services (based on 2017 and 2018 data). The OIG therefore recommends that CMS explore ways to capture early discharges to home health care in the current policy, which CMS referenced in the proposed rule. Following a review of concern cited in stakeholder comments, CMS is not moving forward with any changes to the transfer policy at this time.

IRF Quality Reporting Program Changes & Requests for Information All-Payer IRF-PAI Reporting Proposal
CMS proposed to require collection of the IRF-PAI for all IRF patients, including those without Medicare, beginning with the FY 2025 IRF QRP (with data collection to begin on October 1, 2023). Currently the IRF-PAI is only required to be collected for Medicare Part A (fee-for-service) and Part C (Medicare Advantage) beneficiaries. In response to comments, CMS opted to finalize the proposal but with a revised implementation date. IRFs will now be required to collect IRF-PAIs on all patients, regardless of payer, for the FY 2026 IRF QRP (data collection to begin on October 1, 2024).

RFI on Future QRP Measure Expansions
CMS had issued a Request for Information (RFI) related to measures/concepts for use in the QRP in future years in the proposed rule. The agency specifically requested information on a cross-setting function measure that would include self-care and mobility items, and development of a patient-level COVID-19 vaccination measure. CMS referenced several of AMRPA’s comments, including concerns that IRF stays are typically not long enough to adequately capture COVID-19 vaccination for patients. CMS did not provide a response to comments but affirmed the agency would use the stakeholder feedback to inform future rulemaking.

Thank you. Your advocacy made all the difference this year.

Pennsylvania’s 2022/23 General Fund budget is finally in the books, having been enacted one week after the official June 30 deadline. The $45.2 billion spending plan represents a 2.9% increase in state spending over the previous fiscal year. The wide-ranging budget, made possible by higher-than-expected revenues that led to a multibillion-dollar surplus, includes some extra funding for human services providers who assist individuals with intellectual disabilities and their families as well as more money for mental health services.

Despite record surpluses, the administration and lawmakers still negotiated a spending plan that keeps many other broader budget initiatives flat-lined. Although some of our line-item increases were less than requested, and even though direct payments for workforce issues are limited, the funding boosts we did receive will help human service providers that have faced chronic underfunding for years.

This much is clear: none of the modest success we achieved would have been possible without you.

Over the last five months, you helped our coalition deliver 8,296 messages directly to members of the General Assembly and the administration, plus another 706 social media hits tagging representatives and senators. Your engagement was evident from the start, as our social media platforms exploded and continue to grow. All of this is on top of the phone calls you made to legislative offices, the letters you wrote to your local papers, and the events you attended in your community and even at the Capitol Building in Harrisburg.

The people we serve, their families, and their providers of care were seen and heard.

Lawmakers are more informed than ever. They know who we are, and they are coming to understand our issues and appreciate how important they are to our communities. That education process will continue because our advocacy doesn’t end when the budget bill is signed. It’s a sustained effort that we undertake each and every day on behalf of those who rely on us — individuals with disabilities and mental health needs and their families.

You can view the specifics related to our budget priorities here. And make no mistake about it. This small success is a sign of bigger things to come.

Thank you for all you did, for all you continue to do, and for your continued support and engagement. Your support made the difference.