MDS and AAD Oppose Cuts to Dermatology Payments
On July 14, CMS released the proposed 2027 Medicare Physician Fee Schedule (MPFS) where dermatologists will see a significant payment decrease, underscoring the continued instability of the Medicare physician payment system. The Maryland Dermatologic Society joins the American Academy of Dermatology to strongly oppose these reimbursement cuts and remains steadfast in securing meaningful Medicare physician payment reform.
Mobilize to save our specialty: Stop proposed 9% Medicare cuts
While payment cuts outlined in the proposed 2027 Medicare Physician Fee Schedule threaten healthcare broadly, the rule hits dermatology harder than almost any other specialty, resulting in an estimated single-year payment reduction of 9% to dermatologists.
The immediate concerns
- 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.
- Volatile practice expense (PE) formula changes: CMS proposes new methodology to calculate practice expense without physician input, which will cut dermatology payments by 6% overall in 2027.
- 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.
Private payers frequently propose cutting modifier 25, and the Academy fights each instance and will similarly fight this CMS proposal as inappropriate, especially considering a recent OIG Report that found dermatologists are following modifier 25 billing requirements. PE formula changes unjustifiably redistributes funds away from specialty care, leaving local practices with zero cushion to absorb the loss. The AAD is meeting with CMS to discuss opposition to the cut.
Take action: Call on Congress to reverse Medicare cuts
Fighting these unsustainable policies and working to Save Our Specialty is the AADA’s top priority, and we are deploying every resource at our disposal. But our most powerful asset on Capitol Hill is you, your staff, and our patients.
Lawmakers need to hear directly from dermatologists, their patients, and practice staff 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. Click here to find the links to respond if you are a dermatologist, patient or staff. Find a pre-written letter (which you can easily customize with your own story) directly to your Representative and Senators.
What else can you do?
For the AAD President address regarding the cuts and additional steps you can take, click here.