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B-332432 1 (2020-08-21)

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G     A     O        U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-332432


August 21, 2020

The Honorable Chuck Grassley
Chairman
The Honorable Ron Wyden
Ranking Member
Committee on Finance
United States Senate

The Honorable Frank Pallone, Jr.
Chairman
The Honorable Greg Walden
Ranking Member
Committee on Energy and Commerce
House of Representatives

The Honorable Richard Neal
Chairman
The Honorable Kevin Brady
Ranking Member
Committee on Ways and Means
House of Representatives

Subject: Department of Health and Human Services, Centers for Medicare & Medicaid Services:
        Medicare Program; Inpatient Rehabilitation Facility Prospective Payment System for
        Federal Fiscal Year 2021

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Health and Human Services, Centers for Medicare &
Medicaid Services (CMS) entitled Medicare Program; Inpatient Rehabilitation Facility
Prospective Payment System for Federal Fiscal Year 2021 (RIN: 0938-AU05). We received
the rule on August 12, 2020. It was published in the Federal Register as a final rule on
August 10, 2020. 85 Fed. Reg. 48424. The effective date of the final rule is October 1, 2020.

According the CMS, the final rule updates the prospective payment rates for inpatient
rehabilitation facilities (IRFs) for fiscal year (FY) 2021. CMS states the final rule includes the
classification and weighting factors for the I RF prospective payment system's case-mix groups
and a description of the methodologies and data used in computing the prospective payment
rates for FY 2021, which CMS states is required by statute. CMS further stated the final rule
adopts more recent Office of Management and Budget statistical area delineations and applies
a 5 percent cap on any wage index decreases compared to FY 2020 in a budget neutral
manner. CMS also stated the final rule amends the IRF coverage requirements to remove the
post-admission physician evaluation requirement and codifies existing documentation

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