Key takeaways

  • Medicare Part A covers inpatient rehabilitation in a Medicare-approved facility when deemed medically necessary by a healthcare professional. The duration of stay is indefinite, but full costs are only covered for the first 60 days.
  • In Original Medicare (parts A and B), costs include a deductible for days 1-60, daily copayments for days 61-90 and beyond, and potential coverage from Medigap plans. Medicare Advantage (Part C) plans have varying costs, and Special Needs Plans offer extra benefits for chronic conditions.
  • Medicare requires a doctor’s certification that includes 24/7 access to a medical doctor, frequent doctor interaction, access to a rehabilitation-specialized registered nurse, at least 3 hours of daily therapy for 5-7 days a week, and a multidisciplinary care team. A 3-day hospital stay may be required before rehabilitation coverage, but some surgeries bypass this rule.

Inpatient rehabilitation can help you regain strength, independence, and function after a major illness or injury. A team of doctors, nurses, and therapists usually provides intensive, goal-based care, often including physical, occupational, and speech therapy.

Outpatient rehabilitation is typically done in a clinic where you can go home afterward. Examples include physical and occupational therapy. Medicare should cover either inpatient or outpatient treatment as long as you meet certain guidelines.

Read on to learn about Medicare’s coverage of the different types of rehabilitation.

Medicare covers both inpatient and outpatient rehabilitation when medically necessary. Medicare Part A covers your inpatient care in a rehabilitation facility as long as your healthcare professional deems it medically necessary.

This is usually the case if you live with a medical condition that requires intensive therapy, regular doctor supervision, and coordinated care from your healthcare team. In addition, you must receive care in a facility that’s Medicare-approved.

Medicare Part B covers outpatient rehabilitation visits and therapy, also when medically necessary. This is typically the case when you need to recover from a condition but can do so without round-the-clock care and supervision.

During rehabilitation, a team of healthcare professionals will work together to help you function on your own again. Your treatment plan will be tailored to your condition, but may include:

  • assistance with orthotic or prosthetic devices
  • occupational therapy
  • physical therapy
  • psychological services
  • social services

Outpatient rehabilitation may occur in a doctor’s office or clinic, for example. Inpatient rehabilitation may occur in a special section of the hospital, a skilled nursing facility, or a separate rehabilitation facility. Other things covered as part of inpatient rehabilitation include meals, prescription drugs you need during your stay, and other supplies.

Just keep in mind that even inpatient rehabilitation is intended to be temporary. If you need more prolonged care, you’ll typically need to go to a long-term care facility.

How many days do you get in rehab with Medicare?

You can stay in inpatient rehabilitation indefinitely. However, Medicare will only pay for the full cost for the first 60 days. A detailed breakdown of costs follows below.

Depending on where you receive your inpatient rehab therapy, you may need to have a qualifying 3-day hospital stay before your rehab admission. We’ll discuss that rule in more detail later.

Does Medicare pay for rehab at home?

Currently, Medicare doesn’t limit medically necessary outpatient physical, speech, or occupational therapy within a calendar year.

Medicare may also pay for outpatient rehabilitation at home under its home health services benefits if you need part-time skilled care and are homebound, meaning you have trouble leaving home without help, shouldn’t leave due to your condition, or it requires major effort to do so.

If you’re enrolled in Original Medicare (Part A and Part B) in 2025, you’ll pay the following costs during each benefit period for inpatient rehabilitation.

  • Days 1 through 60: You’ll be responsible for a $1,676 deductible. If you transfer to the rehab facility immediately after your hospital stay and meet your deductible there, you won’t have to pay a second deductible because you’ll still be in a single benefit period. The same is true if you’re admitted to a rehab facility within 60 days of your hospital stay.
  • Days 61 through 90: During this period, you’ll owe a daily copayment of $419.
  • Day 91 and onward: You’ll pay a daily copayment of $838 for each of your lifetime reserve days. You have 60 lifetime reserve days. After you’ve used them all, you’re responsible for all costs.

For outpatient rehabilitation, Part B will pay for 80% of your cost once you meet the annual deductible of $257 in 2025. You are then responsible for the 20% coinsurance and for the monthly premium, which starts at $185, depending on your income.

Keep in mind that these costs will adjust in 2026. In addition, adding a Medigap (Medicare supplement) coverage could help you pay your coinsurance and deductible costs. Some Medigap plans also offer additional lifetime reserve days (up to 365 extra days). You can only use a Medigap plan with Original Medicare, and not with Medicare Advantage.

What is a benefit period?

Each benefit period begins the day you’re admitted to a hospital or skilled nursing facility as an inpatient and ends 60 consecutive days after your stay without further inpatient care.

If you return to the hospital and are admitted within 60 days of your previous stay, you’ll still be in that benefit period. However, a new benefit period begins if you return to the hospital after 60 days without care.

Costs with Medicare Advantage

If you have a Medicare Advantage (Part C) plan, your costs will vary depending on your insurer. If possible, talk with your plan advisor or insurance company in advance so you can prepare for any out-of-pocket costs.

Search for plans in your area and compare coverage using Medicare’s plan finder tool. If you think you may need long-term care, you can explore the available Medicare Advantage Special Needs Plans. These plans are designed to offer extra benefits for people with chronic health conditions and those enrolled in both Medicare and Medicaid.

For outpatient rehabilitation, make sure your doctor refers you to services that follow accepted medical standards for your condition, and that the amount of therapy ordered is reasonable and necessary. Your doctor should indicate all this and clearly show your condition before, during, and after treatment, proving real, lasting improvement.

To ensure Medicare covers your inpatient rehabilitation, follow the guidelines outlined below.

  • Make sure you’re enrolled in Medicare: You can enroll in Medicare from 3 months before to 3 months after your 65th birthday month. Other options include open enrollment (October 15 to December 7), Medicare Advantage enrollment (January 1–March 31), or a special enrollment period if you qualify.
  • Confirm you meet the 3-day rule: Your hospital admission must be officially ordered by your doctor. Time spent under observation or in the ER doesn’t count toward the 3-day requirement, and the days must be consecutive. The discharge day also doesn’t count.
  • Keep an eye on the 60-day rule: Leaving a skilled nursing facility (SNF) can affect your Medicare coverage. You may appeal a discharge, but a break over 30 days requires a new 3-day hospital stay, and a break of 60 consecutive days resets your benefit period with up to 100 new SNF coverage days.
  • If you’re having surgery, check Medicare’s “inpatient only” list: Some surgeries are always inpatient, so the 3-day rule doesn’t apply, and Medicare covers rehab automatically. These are listed on Medicare’s inpatient-only list.
  • Check your doctor’s order: To ensure Medicare coverage for your inpatient rehabilitation, your doctor will have to certify that you need the following:
    • access to a medical doctor 24 hours per day
    • frequent interaction with a doctor during your recovery
    • access to a registered nurse with a specialty in rehabilitation services
    • therapy for at least 3 hours per day, 5-7 days per week, which is known as the 3-hour rule
    • a multidisciplinary team to care for you, including a doctor, a rehabilitation nurse, and at least one therapist

If you want to confirm you’re following Medicare procedures to the letter, you can also contact Medicare directly at 800-MEDICARE (800-633-4227 or TTY: 877-486-2048).

Original Medicare and Medicare Advantage plans pay for inpatient and outpatient rehabilitation if your doctor certifies that this is medically necessary.

Medicare will cover your rehab if you meet certain important conditions. However, you’ll still have to pay for the cost of coinsurance and deductibles, even with Medicare coverage.

While you’re in rehab, a team of nurses, doctors, and therapists will provide your care. They can help you get back on your feet as quickly and safely as possible.