The Centers for Medicare & Medicaid Services (CMS) has published a final rule updating payment rates for inpatient rehabilitation facilities (IRFs) under Medicare for federal fiscal year 2027, effective October 1, 2026. CMS Finalizes FY 2027 Payment UpdateInpatient rehabilitation facilities provide intensive, hospital-level rehabilitative care to Medicare patients recovering from serious conditions such as strokes, hip fractures, and major joint replacements. Payments to these facilities are made through a prospective payment system, meaning Medicare sets rates in advance based on patient characteristics and other factors. This program requires inpatient rehabilitation facilities to report data on the quality of care they provide; facilities that do not meet reporting requirements may face reduced Medicare payment updates. What Medicare Beneficiaries Should KnowThese changes are relevant to Medicare beneficiaries who receive care in inpatient rehabilitation facilities, as well as to the facilities themselves.