On May 7, 2014, CMS published its proposed rule to update Medicare payment policies under the inpatient rehabilitation facility (IRF) PPS for FY 2015. Under the proposed rule, rates would be updated by a 2.1% increase factor, which reflects a 2.7% market basket update, reduced by a -0.4% MFP adjustment and a -0.2 percentage point adjustment mandated by the ACA). Taking into account an additional 0.1% increase to aggregate payments resulting from an update to the outlier threshold, CMS expects IRF PPS rates to rise on average by 2.2% (or $160 million in aggregate) compared to FY 2014 levels. CMS proposes to freeze facility-level adjustment factors (e.g., adjustments for Low-Income Percentage, teaching status, and location in a rural area, if applicable) for FY 2015 and all subsequent years at FY 2014 levels while the effects of FY 2014 changes are evaluated. Among other things, the proposed rule would: revise the list of impairment group codes that presumptively meet the “60 percent rule” compliance criteria; add items to the IRF patient assessment instrument (PAI); and revise the IRF Quality Reporting Program to update measures and add a data accuracy validation policy. The proposed rule also discusses the transition from ICD-9-CM to ICD-10-CM for use on Medicare claims and IRF–PAI submissions (although this transition has been put on hold temporarily as a result of the Protecting Access to Medicare Act of 2014). CMS will accept comments on the proposed rule until June 30, 2014.