On April 11, 2025, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule that proposes updates to Medicare payment policies and rates for inpatient rehabilitation facilities under the Inpatient Rehabilitation Facility (IRF) Prospective Payment System (PPS) and the IRF Quality Reporting Program (QRP) for fiscal year (FY) 2026. CMS is publishing this proposed rule consistent with the legal requirements to update Medicare payment policies for IRFs annually. This fact sheet discusses the major provisions of the proposed rule.