MDS and the AADA Oppose Cuts to Dermatology Payments
September 4, 2026
The proposed 2027 Medicare Physician Fee Schedule includes a cut of 11% to dermatology payments, with targeted proposals affecting the specialty, including a 50% cut to same-day evaluation and procedure care (modifier 25).
Reps. John Joyce, MD, FAAD (R-PA), Greg Murphy, MD (R-NC), Kim Schrier, MD (D-WA), and Herb Conaway, MD (D-NJ) are leading a sign-on letter to CMS Administrator Mehmet Oz, MD, urging him to reject the proposed cut to same-day services. We need you to act before 5 PM ET on Tuesday, Sept. 8.
Opposing these policies remains the AADA’s top priority, and we are focusing our resources on this effort. Our members are central to this work.
If you have met with your Representative recently to Save our Specialty, please reach out again to those contacts and ask them to sign-on to this letter.
Please send a message to your lawmakers asking them to sign the Joyce/Schrier letter asking CMS to stop these cuts by 5 PM ET on Tuesday, Sept. 8.
The proposed 2027 Medicare Fee Schedule poses a serious threat to dermatology. Payment cuts threaten healthcare broadly. The rule hits dermatology harder than almost any other specialty, with several disastrous policies that CMS estimates say will result in a 2027 payment reduction of 9% to dermatologists, with a total reduction of 11% when changes to the conversion factor are included.
Unsustainable: What makes CMS cuts difficult for Maryland physicians and patients
Maryland consistently ranks among the U.S. states with the lowest private payer reimbursement relative to Medicare rates (Maryland Health Care Commission 2023) . If Medicare makes these proposed cuts, private payers are sure to follow. Additionally, Medicare pay has plummeted since 2001. When adjusted for inflation, physicians are paid 33% less today. This unsustainable path that impacts physicians and their patients.
Top three immediate concerns for dermatologists
1. Conversion factor update: Most dermatologists will see a 1.68% cut in the conversion factor for next year, resulting from the expiration of a temporary 2.5% bump provided by Congress for 2026.
2. Practice expense (PE) formula changes: CMS proposes new methodology to calculate PE without physician input, which will cut dermatology payments by 6% overall in 2027.
3. 50% cut to same day care (Modifier 25): Slashes payment by half for evaluation visits provided on the same day as a medically necessary procedure.
Private payers frequently propose cutting modifier 25, and we fight each instance. These formula changes unjustifiably redistributes funds away from specialty care, leaving local practices with zero cushion to absorb the loss. These cuts will delay diagnosis, increase patient out-of-pocket costs, and will require return visits for patients needing both a consultation and a procedure, like a biopsy. We strongly oppose these reimbursement cuts and remain steadfast in securing meaningful Medicare physician payment reform.
Calculate the financial impact on your practice
This tool is designed for surgical and specialty medical practices to estimate their individual losses from the proposed 2027 Medicare payment cuts. In fact, including the modifier 25 cut, RVU re-weighting, and the conversion factor cut, Maryland dermatologists could see an estimated $14 million in payment cuts.
What can you do now
Working to Save Our Specialty is the AADA’s top priority and our most powerful asset on Capitol Hill is you. Members can:
Send a message to Congress
Lawmakers need to hear directly from the practicing dermatologists in their home districts about how these cuts will restrict clinic capacity, delay skin cancer diagnoses, and jeopardize care for local seniors. It takes less than two minutes to make your voice heard.
Meet with your legislators
The most important action you can take is to tell your personal story in person. Look for resources to support you in scheduling, planning and meeting with your legislators in DC.
Engage your patients
The stories and concerns of patients are incredibly powerful. Share the flyer with your patients so they can help tell legislators to Stop the Cuts!
Other Resources
2026 AADA Congressional Advocacy Agenda: Protecting Medicare Access to Physicians
Read the Academy’s 2026 Congressional agenda and 20+ years comparing Medicare updates to U.S. inflation.
Watch President’s message on proposed 2027 fee schedule cuts, here.