Staff Contact: Andrew Wheeler
CMS released the Medicare hospice, inpatient rehabilitation facility and inpatient psychiatric facility final payment and policy updates for FY 2023. One of the most notable changes includes increases to the proposed market basket updates for all three payment systems. CMS used the fourth quarter 2021 IGI’s forecast model as the basis for the proposed rule and finalized the update based on the second quarter 2022 IGI forecast model. Due to the increase in the market basket update, CMS published updated impact tables. The results are as follows.
| Proposed | Final | |
| IPF PPS | +1.5% | +2.5% |
| IRF PPS | +2.0% | +3.2% |
| Hospice | +2.7% | +3.8% |
CMS also finalized the adoption of a permanent 5% reduction cap to wage index decreases. MHA published issue briefs with additional information.
