Learn about inpatient rehabilitation coverage and when Medicare can help cover the costs of rehabilitation care after surgery, serious illness, injury, etc. Medicare can cover inpatient rehabilitation hospitalizations if you need intensive care and specialized care after a serious illness, injury, or surgery. Learn about eligibility criteria, covered services, and cost considerations. To be entitled to a Medicare-covered stay in a rehabilitation hospital, a doctor must declare that this care is medically necessary.
“Medically necessary” means procedures, services or equipment that meet accepted medical standards and are necessary for diagnosis and treatment of a medical condition. You don't have to pay a deductible for inpatient rehabilitation care if Medicare already charged you a deductible for care you received in a previous hospitalization within the same benefit period. If you don't qualify for a Medicare-covered stay in an inpatient rehabilitation hospital, you may be eligible for rehabilitative care at a skilled nursing facility, a home health agency, or an outpatient hospital. An outpatient is a patient who has not been formally admitted to the hospital as an inpatient.