FY 2025 IPPS/LTCH PPS Interim Final Rule Summary

On October 3, 2024, CMS published an interim final rule with comment (IFC) in the Federal Register revising its previously announced federal fiscal year (FY) 2025 policies and rates for Medicare’s hospital inpatient prospective payment system (IPPS) and the long-term care hospital (LTCH) prospective payment system (PPS). The public comment period ends on November 29, 2024. The payment rates and policies described in the IPPS/LTCH final rule with comment (CMS- 1808-IFC) reflect an update to CMS’ previous FY 2025 IPPS/LTCH final rule published on August 28, 2024. The new payment rates and policies reflect a change to CMS’ low wage index policy in response to a D.C. Circuit Court decision on July 23, 2024, that held that the Secretary lacked authority to adopt the low wage index hospital policy and related budget neutrality adjustment. The Circuit Court vacated CMS’ policy for FY 2020.